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Intel to expand its domestic chip fab and foundry business into Arizona

The cost of these two plants is expected to reach $20 billion and will help address the current chip shortage plaguing the tech industry.

Sam Chandler

March 23, 2021 5:30 PM

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Intel has announced plans to spend $20 billion building two new chip plants in Ocotillo, Arizona. This sets Intel up to continue focusing on manufacturing and gives U.S. companies a local alternative to Asian chip factories. It’s also a step that will help prevent something like the chip shortage currently affecting many areas of the technology industry from happening again.

The news of Intel’s plans to build these new facilities, called fabs, was reported on by Kif Leswing of CNBC on March 23, 2021. Not only will these fabs be utilized by Intel to design and manufacture its own chips, but CEO Pat Gelsinger also stated that Intel will act as a foundry for other companies.

Known as the Intel Foundry Services, this service will allow other local chip designers access to a US-based manufacturing foundry. The CNBC article goes on to state this foundry, “will manufacture a range of chips, including chips based on ARM technology.”

Recently, President Biden signed an executive order to start a 100-day review of the unprecedented chip famine that currently threatens business. This new Intel foundry should help alleviate some of the pressures felt by numerous areas, even those outside of the gaming industry. In saying that, the CNBC piece also draws attention to a slide displayed by Intel during the announcement that “suggested companies including Amazon, Google, Microsoft, and Qualcomm could be customers for the business.”

The announcement of these new domestic chip fabs saw Intel’s stock rise 5 percent. Gelsinger also mentioned that Intel’s 7-nanometer chips are “on track to hit a milestone in the second quarter.” Be sure to keep it locked to Shacknews as we bring you the latest on Intel’s chip fab business and everything else related to the current chip shortage.

Sam Chandler

Guides Editor

Hailing from the land down under, Sam Chandler brings a bit of the southern hemisphere flair to his work. After bouncing round a few universities, securing a bachelor degree, and entering the video game industry, he's found his new family here at Shacknews as a Guides Editor. There's nothing he loves more than crafting a guide that will help someone. If you need help with a guide, or notice something not quite right, you can message him on X: @SamuelChandler