Intel Commits to $20 Billion Arizona Research and Production Facility
The exodus from Silicon Valley continues for major tech companies as Intel looks forward to creating a new manufacturing campus in the deserts of Arizona. The company announced the development of two new chip factories at its campus outside of Phoenix on Monday.
New Factory Facilities Will Create 15,000 Jobs Inside and Beyond Campus
As part of Intel’s “IDM 2.0” strategy, the company is rethinking the evolution of its integrated device manufacturing model. In order to serve the constant demand for new technology, the microchip giant will expand its foundry services while increasing output through new manufacturing facilities.
This new facility will allow Intel to continue manufacturing most of its products internally, assuring quality control for everything it offers. This includes the company’s next 7nm CPU chip, codenamed “Meteor Lake.” The new processor is expected to get its first test in the second quarter of 2021 and go on the market by 2023. Alongside the expansion, Intel will work together with IBM on a research collaboration to drive next-generation logic and packaging technologies for computing.
The tech giant will also create its own foundry business. Intel Foundry Services will launch under the leadership of semiconductor industry veteran Dr. Randhir Thakur. This direct foundry will be in charge of providing capacity for the U.S. and European markets, combining a wide-ranging product portfolio with “leading-edge process technology.”
The two new factories in Chandler, Arizona will support Intel’s next generation with an investment of $20 billion in its campus. In addition to creating 3,000 construction jobs and 3,000 permanent high-tech jobs, the new campus will create about 15,000 long-term jobs in the area.
“Intel is the only company with the depth and breadth of software, silicon and platforms, packaging, and process with at-scale manufacturing customers can depend on for their next-generation innovations,” Intel CEO Pat Gelsinger said in a statement. “IDM 2.0 is an elegant strategy that only Intel can deliver — and it’s a winning formula.”
Intel Expansion Comes as Semiconductor Demand Expected to Rise
Announcement of the new facility comes as the semiconductor industry looks to meet new demands from a workforce that will remain at home for the immediate future. The Semiconductor Industry Association predicted in December that global semiconductor sales will grow 8.4% in 2021, eclipsing a 6.8% increase totaling $440.4 billion in 2020.
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