Tech News: Intel will invest billions in US manufacturing plant.
Chip giant Intel announced a $ 3.5 billion investment to upgrade its manufacturing facility in Rio Rancho, New Mexico. The multi-year investment is intended to modernize the plant for the production of advanced semiconductor packaging technologies, including its 3D packaging technology called Foveros.
The investment follows a further announcement by Intel earlier this year that it would build two new semiconductor plants in Arizona at a cost of $ 20 billion. This series of investments is part of the review of the Integrated Device Manufacturing (IDM) model by new Intel CEO Pat Gelsinger, including the creation of a new semiconductor manufacturing company called Intel Foundry Services.
“We are proud to have invested in New Mexico for more than 40 years and see that our Rio Rancho campus continues to play a vital role in Intel’s global manufacturing network in our new era of IDM 2.0,” said Keyvan Esfarjani. Senior Vice President of Intel and general manager of manufacturing and operations.
The investment in New Mexico comes just weeks after Gelsinger promised his company to increase production of existing units in an effort to help companies overcome the current shortage of semiconductor chips.
Gelsinger called 2021 a “pivotal year” for the company last month, as Intel surpassed analyst revenue expectations for the first quarter of 2021, thanks largely to strong growth in PC sales.
The Rio Rancho facility is one of Intel’s oldest manufacturing facilities and, according to the company, currently develops and manufactures Intel Optane SSD technology, integrated multi-die interconnect bridge, and Intel’s silicon photonics technology.
In a press release, the chipmaker shared that the new investment will create at least 700 high-tech jobs in the state, as well as 1,000 construction jobs, while supporting an additional 3,500 jobs in the state.