Intel Corp on Friday broke ground on two new factories in Arizona as part of its turnaround plan to become a major manufacturer of chips for outside customers.
The US$20 billion plants — dubbed Fab 52 and Fab 62 — would bring the total number of Intel factories at its campus in Chandler, Arizona, to six.
They would house Intel’s most advanced chipmaking technology and play a central role in the Santa Clara, California-based company’s effort to regain its lead in making the smallest, fastest chips by 2025, after falling behind rival Taiwan Semiconductor Manufacturing Co (TSMC, 台積電).
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The new Arizona plants would also be the first Intel has built from the ground up with space reserved for outside customers. Intel has long made its own chips, but its turnaround plan calls for taking on work for outsiders such as Qualcomm Inc and Amazon.com Inc’s cloud unit, as well as deepening its manufacturing relationship with the US military.
“We want to have more resilience to the supply chain,” said Intel chief executive Pat Gelsinger, who earlier in the week attended a White House meeting on the global chip shortage. “As the only company on US soil that can do the most advanced lithography processes in the world, we are going to step up in a big way.”
Gelsinger said it was too early to say how much of the new plants’ capacity would be reserved for outside customers.
The plants would produce “thousands” of wafers per week, he said.
Wafers are the silicon discs on which chips are made, and each can hold hundreds or even thousands of chips.
Intel rival TSMC has also purchased land to build its first US campus in Phoenix, not far from Intel’s location, where TSMC plans up to six chip factories.
Gelsinger said that Intel plans to announce another US campus site before the end of the year that would eventually hold eight chip factories.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
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Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with