CHANDLER, Ariz. — Intel announced Tuesday it would build two new factories in Arizona and outsource more of its production as a new CEO looks to turn around the struggling chipmaker. The California-basedthe Arizona expansion will cost about $20 billion and create 3,000 permanent jobs as Intel builds a foundry business to provide chips for other firms. More construction in the .
CEO Pat Gelsinger said that Europe and elsewhere could be announced over thein a video outlining his vision for the company’s transformation. “The unprecedented demand for technology has created even more need for the innovative products Intel creates,” Keyvan Esfarjani, Intel’s senior of manufacturing and operations, told reporters outside the company’s plant in Chandler, Arizona.
Intel dominated chip-making for decades but has lately stumbled with delays in developing a next-generation chip-making process already used by a significant Taiwan supplier, TSMC. It has struggled to adapt to the shift from personal computers to mobilereleased its game-changing iPhone over a decade ago. Although the company has remained profitable, its heyday during the PC era was long ago. Intel weathered another blow when Apple, also based in California, announced it would rely on its chips to power
its Mac computers instead of Intel’s. Arizona Gov. Doug Ducey called Intel’s growth plan the most significant private-sector investment in state history and a victory for U.S. manufacturing. “Let’s to the United States,” Ducey said. “And while we’re at it, let’s bring it back to Arizona.”
Taiwan Semiconductor Manufacturing Company is also planning a large factory in North Phoenix.
that don’t immediately pan out. A decade ago, the company announced plans to build a new multibillion-dollar factory in Chandler while President visited Intel’s plant in Hillsboro, Oregon. That facility, known as Fab 42, was put on ice for years, was announced again alongside President Donald Trump in 2017, and late last year.
The company, which earned nearly $21 billion last year on revenue of $78 billion, is eligible for up to $90 million in state tax credits if it fulfills the job and investment commitments it made Tuesday, said Sandra Watson, head of the Arizona Commerce Authority, the state’s economic development agency. State lawmakers on Monday rushed through legislation to boost the funding available for the program from $70 million to $125 million a year.
Which Duceyhours before Intel’s announcement. Intel began operations in Arizona in 1980 when it established its facility in West Chandler. It later campus several miles away in the sprawling suburb’s Ocotillo region. This story has been corrected to show that state lawmakers boosted funding for a tax credit program from $70 million to $125 million, not more than double.