Intel Breaks Ground on $20-Billion Arizona Plants as US Chip Factory Race Heats Up

Intel on Friday broke floor on two new factories in Arizona as a part of its turnaround plan to change into a significant producer of chips for out of doors prospects.

The $20 billion vegetation — dubbed Fab 52 and Fab 62 — will deliver the entire variety of Intel factories at its campus in Chandler, Arizona, to 6. They may home Intel’s most superior chipmaking expertise and play a central position within the Santa Clara, California-based firm’s effort to regain its lead in making the smallest, quickest chips by 2025, after having fallen behind rival Taiwan Semiconductor Manufacturing.

The brand new Arizona vegetation can even be the primary Intel has constructed from the bottom up with area reserved for out of doors prospects. Intel has lengthy made its personal chips, however its turnaround plan requires taking up work for outsiders equivalent to Qualcomm,’s cloud unit, in addition to deepening its manufacturing relationship with the US army.

“We wish to have extra resilience to the availability chain,” Intel Chief Govt Pat Gelsinger, who earlier within the week attended a White Home assembly on the worldwide chip scarcity, instructed Reuters in an interview. “As the one firm on US soil that may do probably the most superior lithography processes on this planet, we’re going to step up in an enormous manner.”

Gelsinger mentioned it was too early to say how a lot of the brand new vegetation’ capability can be reserved for out of doors prospects. He mentioned the vegetation would produce “hundreds” of wafers per week.

Wafers are the silicon discs on which chips are made, and every can maintain a whole bunch and even hundreds of chips.

Intel rival TSMC has additionally bought land to construct its first US campus in Phoenix, not removed from Intel’s location, the place TSMC plans as much as six chip factories , Reuters beforehand reported.

Gelsinger mentioned Intel plans to announce one other US campus website earlier than the top of the 12 months that can finally maintain eight chip factories.

© Thomson Reuters 2021

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