Intel (INTC) – Get Intel Company (INTC) Report on Friday broke floor on two new computer chip factories in Arizona as component of a $20 billion venture to help alleviate the intense shortage of semiconductors in the U.S.
The Santa Clara, Calif.-dependent semiconductor chip manufacturer’s CEO Pat Gelsinger led the project’s groundbreaking ceremony at the company’s Ocotillo campus in Chandler, Ariz., marking the premier private financial investment in the state’s historical past.
Intel expects the factories to be completely operational in 2024 to manufacture the company’s most innovative process systems.
“Today’s celebration marks an crucial milestone as we get the job done to raise potential and satisfy the unbelievable demand for semiconductors: the foundational technology for the digitization of almost everything,” Gelsinger explained in a corporation assertion. “We are ushering in a new period of innovation – for Intel, for Arizona and for the world. This $20 billion expansion will deliver our total expenditure in Arizona to extra than $50 billion because opening the web page about 40 years back.
“As the only U.S.-centered major-edge chipmaker, we are dedicated to setting up on this long-phrase expenditure and encouraging the United States regain semiconductor leadership,” Gelsinger mentioned.
Shares of Intel on Friday traded .18% higher to $54.32 after several hours.
Gelsinger on Thursday participated in a digital meeting with tech business executives and Commerce Secretary Gina Raimondo to handle the world semiconductor chip shortage, which has interfered with output in the large-tech, electronics and automotive industries.
The two new factories, to be named Fab 52 and Fab 62, will residence a whole of six semiconductor fabs. The job will generate over 3,000 significant-tech, superior-wage Intel jobs, 3,000 construction careers and help an believed 15,000 more oblique employment in the regional group.
Intel rival Taiwan Semiconductor Producing Co. designs to make its next U.S. chip manufacturing unit also in Arizona and targets production to start out in 2024.