Intel is planning on investing 3.5 billion US Dollars to upgrade its chip manufacturing plant in Rio Rancho, New Mexico. This move in combination with 20 billion US Dollars to build two new facilities in Arizona that will help boost chip production in the US.
According to a CNET report, the chip making giant has confirmed that it will be spending 3.5 billion US Dollars on the upgrade. Keyvan Esfarjani, the company’s manufacturing chief, aims to reveal the plan at a press conference with New Mexico Governor Michelle Lujan Grisham, and New Mexico’s two senators, Martin Heinrich and Ben Ray Luján, and Rep. Teresa Leger Fernandez. Furthermore, the chip maker is also planning on spending its own money to invest more, rather than just spending it on buying its own stock.
The company’s CEO Pat Gelsinger stated that “We will not be anywhere near as focused on buybacks going forward as we have in the past.” The senior official further added that it has “been reviewed as part of my coming into the company, agreed upon with the board of directors.” While Intel has been a major figure in the semiconductor industry, the firm has recently lagged behind Taiwan Semiconductor Manufacturing Co. (TSMC) in recent years.
Now, the company is investing in its new chipmaking plant or fabs as a major effort to restore competitiveness under its new chief executive. The firm is also planning on building chips for other brands through a business called foundry, while also relying on other foundries to produce some of its own chips as well.
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