Intel has announced plans to invest more than US$5 billion to build a new chip manufacturing facility at its site in Chandler, Arizona. Designated Fab 42, it will be built as a 300mm factory.
Construction of Fab 42 is scheduled to begin in the middle of 2011, and is expected to be completed in 2013, according to Intel. The new facility will ultimately create thousands of construction and permanent manufacturing jobs at Intel’s Arizona site, the company added.
“This fab will begin operations on a process that will allow us to create transistors with a minimum feature size of 14 nanometers,” said Brian Krzanich, senior VP and GM for Intel’s manufacturing and supply chain operations. “The products based on these leading-edge chips will give consumers unprecedented levels of performance and power efficiency across a range of computing devices from high-end servers to ultra-sleek portable devices.”
Intel revealed that it manufactures three-fourths of its microprocessors in the US, while more than three-fourths of the company’s sales come from outside of the US. The addition of this new fab will increase Intel’s American manufacturing capability significantly, the company claimed.
Plans to build the new Arizona plant were unveiled by Intel president and CEO Paul Otellini during a visit by President Barack Obama at an Intel facility in Hillsboro, Oregon. Otellini also disclosed the company plans to add 4,000 US jobs in 2011. With more than 15,000 workers in Oregon, Intel is the state’s largest private employer.
In October 2010, Intel announced plans to spend US$6-8 billion over several years to upgrade existing US factories and build a new development fab in Oregon. These activities would support approximately 6,000-8,000 additional US construction jobs during the building phase and eventually add up to 1,000 manufacturing jobs.