Intel to spend $20 bln on chip factories

Intel has announced an ambitious plan to expand its microchip manufacturing capacity, which will cost it $20 billion.

Reuters’ Stephen Nellis reported:

Intel Corp will greatly expand its advanced chip manufacturing capacity as the new chief executive announced plans to spend as much as $20 billion to build two factories in Arizona and to open up its factories to outside customers.

Devindra Hardawar from Yahoo Finance wrote:

“Intel is the only company with the depth and breadth of software, silicon and platforms, packaging, and process with at-scale manufacturing customers can depend on for their next-generation innovations,” Gelsinger said in a blog post. “IDM 2.0 is an elegant strategy that only Intel can deliver – and it’s a winning formula.”

The Wall Street Journal’s Aaron Tilley noted:

Concerns about the robustness of the U.S. chip industry have grown in Washington over the past couple of years as semiconductor production shifted to Asia. Those worries intensified in recent months amid a global component shortage. Car makers, in particular, have felt the impact of the semiconductor shortage, causing them to idle some of their production capacity.