Computer chip giant Intel announced significant manufacturing expansion plans, starting with an estimated $20 billion investment to build two new factories on its Ocotillo campus in Chandler, Arizona.
Intel said the project is expected to create over 3,000 permanent high-tech, high-wage jobs; over 3,000 construction jobs; and approximately 15,000 local long-term jobs.
The company expects to begin planning and construction activities this year.
CEO Pat Gelsinger also announced Intel’s plans to become a major provider of foundry capacity in the US and Europe to serve customers globally.
To deliver this vision, Intel is establishing a new standalone business unit, Intel Foundry Services (IFS), led by semiconductor industry veteran Dr. Randhir Thakur, who will report directly to Gelsinger.
Gelsinger noted that IFS will be differentiated from other foundry offerings with a combination of leading-edge process technology and packaging, committed capacity in the US and Europe, and a world-class IP portfolio for customers, including x86 cores as well as ARM and RISC-V ecosystem IPs.
He said the announcements are part of the company’s “IDM 2.0,” vision, which aims to overhaul Intel’s integrated device manufacturing (IDM) model.
“We are setting a course for a new era of innovation and product leadership at Intel,” said Gelsinger.
“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.
“DM 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.”