Intel begins construction of Fab 52 and Fab 62 chip foundries in Arizona

Intel appears to have started working on future plans to compete with TSMC and Samsung on chipmaking by building two chip factories in Arizona, allowing for more manufacturing capacity. It should also help generate more supply surplus in the heated semiconductor market. Both factories are expected to be completed and operational no earlier than 2024. Intel has dubbed the two factories “Fab 52” and “Fab 62”. The location of the two semiconductor factories is near four existing factories on the Ocotillo campus, Intel’s main manufacturing facility in North America, in Chandler, Arizona.

The construction of new manufacturing plants, an important step in Intel’s IDM 2.0 strategy

Pat Gelsinger, CEO of Intel, hosted government officials at a ceremony celebrating the most recent and largest private investment in Arizona history. This new venture, with more than $ 20 billion used for this project, gives Intel the additional capacity to create next-generation EUV production lines and enables greater manufacturing capacity for advanced chip technologies.

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Gelsinger and other Intel officials estimate this will create thousands of new jobs in Arizona, including nearly 3,000 construction jobs as well as higher-paying and managerial positions, and more than 15,000 miscellaneous indirect positions for the industry. North American region. Gelsinger said Intel would regain its “undisputed leadership in processing and packaging technology.”

The construction of the two new manufacturing plants is part of Intel’s IDM 2.0 strategy to create a new Intel Foundry Services (IFS) division for “contract manufacturing” for other companies, a first for the manufacturing giant. technology.

Intel Foundry Services chairman Randhir Thakur has requested additional funding from the Biden administration, calling for “domestic manufacture of semiconductors beyond the $ 52 billion currently allocated in this direction.”

In July, the IFS revealed that they had secured Qualcomm and Amazon to have their first two large companies use Intel’s semiconductor chips for their projects. Recently, Intel also entered into an agreement with the Pentagon for the start-up phases of the Rapid Assured – Commercial Microelectronic Prototypes (RAMP-C). This new program aims to create systems using chips made in America.

Once operational, Intel’s two semiconductor factories will begin producing Intel’s 20A process technology, using Gate-All-Around (GAA) transistors, as well as PowerVia interconnects for its RibbonFET variants. Intel did not disclose exactly what percentage of the two facilities would be created for IFS customers, but said the factories plan to produce a large amount of wafers each week.

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Intel leaked information earlier this year that the company plans to use up to $ 120 billion to create what they call a “new mega-fab” in North America to compete with both TSMC and Samsung. In fact, there is an ongoing plan to use $ 95 billion to create additional two-chip facilities in Europe, amid talks with representatives of the European Recovery and Resilience Fund.

No word has been said on the European locations of the two new sites, but is expected to be revealed in the coming months.

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