Intel breaks ground on 2 Arizona chip plants worth $20B

Kennith Bogan

Table of Contents

Dive Short:

  • Intel is expanding its existence in Arizona by means of the building of two new semiconductor factories really worth $20 billion, in accordance to an Intel press release.
  • Predicted to be thoroughly operational in 2024, the facilities will use 3,000 Intel workers, 3,000 building work, and guidance an approximated 15,000 supplemental oblique jobs in the community neighborhood, in accordance to the launch.
  • Intel’s strategies for the semiconductor fabricator factories (also recognised as “fabs”) have guidance from government officers, these types of as Arizona Gov. Doug Ducey, who reported that the groundbreaking “ushers in a new landscape for Arizona semiconductor creation,” according to the release.

Dive Perception:

Amid a semiconductor shortage, offer chain concerns and a 26-yr-extensive drought, Intel broke ground on its two new factories worth $20 billion on Sept. 24 on its Ocotillo campus in Chandler, Arizona.

The expansions, officially declared on March 23, are intended to stage into the semiconductor production market domestically, in response to severely stagnated provide chain problems domestically and abroad, together with a shortage of semiconductors that are impacting automakers and other industries.

The investment decision also arrives as the Senate passed the United States Innovation and Opposition Act (USICA) final June, which would give $52 billion to domestic semiconductor analysis and creation, which the Semiconductor Industry Association lobbied for.

The challenge will be 670,000 square ft, and will provide the complete variety of semiconductor fabricator factories to six on the campus, in accordance to Fox10 Phoenix. Dominic Greensmith, director of construction at Intel, informed Fox10 Phoenix that the new facility would be a few situations much larger than the outdated facility, after enlargement is done.

The two facilities will be even more extensions of Intel’s relationship with Arizona, the place it has experienced a campus in Chandler considering that 1980, and in Arizona over-all considering the fact that 1979. The Arizona website is Intel’s 2nd largest all round, and Intel counts itself as the largest employer in Chandler, according to the enterprise website.

Nevertheless, in spite of Intel’s heritage, it is not the only firm in the semiconductor business in Arizona. In March, the Taiwan Semiconductor Manufacturing Co. announced it was developing a $12 billion, 3.8 million square foot producing sophisticated in Phoenix. This factory is also on track to open up in 2024.

One more vital challenge is the drought that Arizona has been going through for the last 26 many years. Semiconductor fabs, in accordance to The Verge, are extremely h2o intense. Factories can use between 2 million and 4 million gallons of drinking water per working day, or the equal of involving 13,698 to 27,397 Arizona citizens daily drinking water use. 

Intel has prided by itself on its purpose of achieving net positive drinking water usage by 2030. In 2020, the Arizona web site returned and restored around 95% of the freshwater applied in manufacturing to the local community and regional watersheds, according to the launch.

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