Intel commits $3.5 billion to build a facility in New Mexico to support American chip making

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Intel has said it will invest $3.5 billion in New Mexico to help increase the competitiveness of US chip manufacturing. The $2 billion plus Intel has put aside for new fabs in Arizona is part of this expenditure that the corporation is funding with Intel’s $20 billion budget.

Intel investing $3.5B in New Mexico fab upgrade, boosting US chipmaking -  CNET

The CNet article reports that Intel’s Foveros stacking technology will be used to manufacture chips in the new facility. The $20 billion being dedicated to two new Arizona fabs will be included. It is rumoured to be a component of Pat Gelsinger’s plan to turn the company around.

Intel just revealed that they will be spending $3.5 billion on upgrading a New Mexico factory. They say the money will be used to increase Foveros, a technique for stacking processing chips. The $20 billion being used to develop two factories in Arizona is a big component of Intel’s strategy to revitalise its manufacturing, with $15 billion in spending.

Chip Manufacturer to Hire 700 More People

Intel affirmed its strategy to boost the company’s long-term financial outlook, following an appearance on CBS’ 60 Minutes. The organisation said that it will result in the creation of 700 additional jobs at the location in the following three years. Intel’s head of manufacturing, Keyvan Esfarjani, unveiled the idea in a special press conference with Michelle Lujan Grisham and two other senators from New Mexico, Martin Heinrich and Ben Ray Lujan, as well as Representative Teresa Leger Fernandez.

It will be done in 2021, and it will create 1,000 employment in construction. The New York Times, quoting The Wall Street Journal, noted that Intel was known for leading chipmaking advancements for decades, but recently has been surpassed by Taiwan Semiconductor Manufacturing Co. Investing in new chipmaking facilities, known as fabs, is part of Intel’s larger efforts to repair its profitability under its new CEO, Pat Gelsinger. The company has fabs so that it can make chips for other firms.

Intel to make chip for others

Foundries, which construct chips for others, are an integral part of the new business strategy for the corporation, as it looks to have some of its chips manufactured by other foundries and use those foundries to make more of its own chips. Intel’s first quarter earnings were a tad lacklustre, as evidenced by their bearish profits.

Intel has stated that they will employ more processor package technology at the New Mexico fab, as it is named Foveros, which Intel says was first introduced in 2018. Using this method for the first time, Lakefield, a new chip code, was developed.

Intel is going to focus on manufacturing, rather than stock buybacks.

Stacking chip elements on top of each other, hooking them together for power and communication, and making it all work smoothly is a really challenging task. But Intel believes it will offer better production options. In addition, it could also be helpful to make space for parts that were manufactured by other semiconductor foundries.

Intel is thrilled with the present federal political initiatives aimed at garnering additional government support for the American semiconductor industry. Gelsinger added that Intel is more focused on investing more of its own money, rather than paying out shares in dividends to investors, which keeps shareholders satisfied but isn’t advantageous to the company’s research or operations.

What is Foveros, exactly?

Intel is able to utilise Foveros 3D packaging technology, which allows for vertical stacking of compute tiles, increasing computing performance and reducing the amount of space required. In addition, Intel may maximise on cost and power efficiency by mixing and matching its computational tiles. Intel’s change from system-on-chip to “system on package” will allow the company to keep up with demands for AI, 5G, and the edge by improving processing capability.

Why this investment Important?

As per businesswire Intel’s global industrial network gives the company an advantage that improves economics, lowers production costs, and ensures consistent supply. Manufacturing investments are a major part of the company’s IDM 2.0 strategy, which recently was disclosed. Technologies at the Rio Rancho facility—such as Intel® Optane™ technology, embedded multi-die interconnect bridge, and Intel® silicon photonics technology—have become critical components of Intel’s efforts to help make semiconductor memory, packaging, and connectivity better for Intel’s new era of innovation.

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