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Intel invests $ 3.5 billion in Mexican fabric upgrades to boost U.S. chip production.

Intel plans to spend $ 3.5 billion on upgrading its chip factory in Rio Rancho, New Mexico.

Intel plans to spend $ 3.5 billion on upgrading its chip factory in Rio Rancho, New Mexico.


On Monday, Intel announced a $ 3.5 billion upgrade to a chip factory in Rio Rancho, New Mexico, that will boost a processor stacking technology called Foveros.That spending combined with 20 billion. The million dollars to build two new Arizona plants are part of Intel’s major effort to restore production.

The chipmaker on Sunday confirmed the upgrade plans with CBS’s first 60-minute report and said Monday it would mean 700 new jobs on the site over the next three years, Intel’s manufacturing chief Keyvan Esfarjani gave. The plans were detailed at a press conference with the New Mexico government, Michelle Lujan Grisham, two New Mexico senators Martin Heinrich and Ben Ray Luján and Rep. Teresa Leger Fernandez, Intel said.

For decades Intel has been leading the way in chip manufacturing advancements. But it failed after Taiwan Semiconductor Manufacturing Co. in recent years. The investment in a new chip factory, called fabs, is part of Intel’s major effort to restore competitiveness under New CEO Pat GelsingerThe company also plans to build chips for others, a business known as a foundry, and rely on other chip foundries to build their own chips.

At the New Mexico fab Intel will increase the use of files. Processor packaging technology called Foveros. That Intel released in 2018 and used for the first time in performance, but Unconventional chip code name, Lakefield.Stacking the chip elements separately on top of each other and connecting power distribution and communication links is technologically difficult, but Intel expects it to increase production flexibility. It can also be used to support chip components made in other chip foundry.

More chip investment, less share repurchase.

Intel is happy with the current political effort in federal funding to help the US chip industry.Gelsinger said Intel will also invest more of its own money, rather than spending it on buying its own shares. Which makes shareholders happy But it doesn’t help with research or operations.

“We’re not going to be as close to focusing on future buybacks as in the past,” Gelsinger said, 60 Minutes. That agreed with the committee “

Appealing to shareholders is important as Intel struggles, Moor Insights and Strategy analyst Patrick Moorhead tweeted on Monday, “If they don’t make buybacks, I think the company will break,” Moorhead said. The widely recommended solution to Intel’s downfall is to separate the chip design business that comes with processors such as the Core and Xeon models from the chip manufacturing business.

Intel’s intense competition

Silicon Valley companies are still profitable. But it faces stiff competition in many respects.In addition to TSMC and third-largest chipmaker Samsung, all smartphone processors are members of the Arm family, including Apple’s A series.Apple is also spinning off from Intel. For the new Mac-series Mac processors, Amazon now offers Arm server processors for Amazon Web Services, the cloud computing foundation that powers different parts of the Internet.

Intel also faces a smaller rival, Arm called RISC-V, which has caught the attention of some of the more famous chip startups.One Tenstorrent hired Jim Keller, formerly the high-profile Intel chip designer, as chief officer. Manage Another is that Esperanto Technologies has revealed designs of AI chips with more than 1,000 cores.

How serious is Intel in the foundry business? But it can create both Arm and RISC-V processors.

TSMC is spending billions of dollars on new fabs as well, most of them in Taiwan. But it’s also in Arizona. Gelsinger was bullish, but: “We believe it will take a few more years and we will have to catch up,” he said, 60 minutes.

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