Intel Breaks Ground to Construct Two New Fabs

Fab capacity will be outsourced to fabless chip makers across the world

Intel broke ground on Sept 24 to build two new leading-edge chip factories at the company’s Ocotillo campus in Chandler, Arizona.

It will cost US$20 billion to complete the construction of the two fab lines.

The two fabs are scheduled to come online in 2024.

The investment commitment represents Intel’s strategic initiative to help U.S. semiconductor industry to regain its lost competitiveness, as semiconductors are increasingly becoming he most integral part of global economic future.

At a ground-breaking ceremony held in the Chandler wafer fabrication hub, Intel CEO Pat Gelsinger said, “Today’s celebration marks an important milestone as we work to boost capacity and meet the incredible demand for semiconductors: the foundational technology for the digitization of everything.

“We are ushering in a new era of innovation – for Intel, for Arizona and for the world. This $20 billion expansion will bring our total investment in Arizona to more than $50 billion since opening the site over 40 years ago. As the only U.S.-based leading-edge chipmaker, we are committed to building on this long-term investment and helping the United States regain semiconductor leadership,” he added.

True enough, the U.S. has lost ground in semiconductor manufacturing and is at risk of falling farther behind.

Regain U.S Leadership

Intel CEO Pat Gelsinger is gesturing thumps up on an earth moving equipment at a groundbreaking ceremony held in Chandler, Arizona on Sept 24.

With its new IDM 2.0 strategy that aims to open its own chip fabrication capacity to outsider fabless chip makers and chip design houses in the U.S. and Europe, Intel is doing its part to help rebuild U.S. leadership and bring more balance to the global supply chain.

Intel is the only integrated device manufacturer, or IDM with leading-edge process and packaging research capabilities in the United States.

As worldwide demand for chips is rapidly surging across multiple segments from PCs to automobiles to the data center, chip capacity is running short.

As with the case, the two new fabs in Arizona will not only supply support growing demand for Intel’s products, but will also provide committed capacity for fabless chip makers around the world.

Intel newly launched its foundry contract chip-making business, Intel Foundry Service or IFS, in early 2021    

“With Intel Foundry Services, Intel is opening its fab doors wide to serve the needs of foundry customers around the globe – many of whom are looking for more geographical balance in the

With the addition of the two new factories – to be named Fab 52 and Fab 62 – Intel’s Ocotillo campus will house a total of six fabs.

The new investment will create more than 3,000 high-tech, high-wage Intel jobs, 3,000 construction jobs, and support an estimated 15,000 additional indirect jobs in the local community. When fully operational in 2024, the new fabs will manufacture Intel’s most advanced process technologies, including Intel 20A featuring the new RibbonFET and PowerVia innovations.