Intel Opens Two New Chip-Making Factories For $20 Billion To Battle Global Chip Shortage

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Chipmaker Intel has announced to invest $20 billion for two new manufacturing facilities in the US, along with plans to outsource more of its chip production to third-party foundries.

New Intel CEO Pat Gelsinger also unveiled a new branch of the company called Intel Foundry Services, to become a major provider of foundry capacity in the US and Europe to serve customers globally.

During the “Intel Unleashed: Engineering the Future” webcast, Gelsinger shared his vision for “IDM 2.0,” a major evolution of Intel’s integrated device manufacturing (IDM) model.

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“We are setting a course for a new era of innovation and product leadership at Intel,” said Gelsinger.

“IDM 2.0 is an elegant strategy that only Intel can deliver – and it’s a winning formula. We will use it to design the best products and manufacture them in the best way possible for every category we compete in,” he said in a statement late on Tuesday.

Gelsinger also re-affirmed the company’s expectation to continue manufacturing the majority of its products internally. The two new fabs (or factories) will be built in Arizona, located at the company’s Ocotillo campus. These fabs will support the increasing requirements of Intel’s current products and customers, as well as provide committed capacity for foundry customers.

Intel logo Ready for Rocket Lake
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The new fabs are expected to create over 3,000 permanent high-wage jobs, over 3,000 construction jobs and approximately 15,000 local long-term jobs. Gelsinger said he plans to announce the next phase of capacity expansions in the US, Europe and other global locations within the year.

The Intel CEO expects Intel’s engagement with third-party foundries to grow and to include manufacturing for a range of modular tiles on advanced process technologies, including products at the core of Intel’s computing offerings for both client and data centre segments beginning in 2023.

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