Intel’s $20B investment in 2 new chip factories in S. Chandler to create 3,000 high-wage tech jobs

Construction begins on two new chip factories at Intel’s Ocotillo campus in south Chandler, Fab 52 and Fab 62. The $20 billion price tag is the largest private-sector investment in Arizona history.  — Photos courtesy of Intel

Intel’s recent ground breaking on two leading-edge chip factories at its Ocotillo campus in south Chandler marks the first step of a journey to significantly increase its chipmaking capacity and capabilities critical to economic and national security, the company said.

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When fully operational in 2024, the new fabs will manufacture Intel’s most advanced process technologies, including Intel 20A, featuring its RibbonFET and PowerVia innovations.

“(The ground breaking) marks an important milestone as we work to boost capacity and meet the incredible demand for semiconductors, the foundational technology for the digitization of everything,” Intel CEO Pat Gelsinger said. “We are ushering in a new era of innovation – for Intel, for Arizona, and for the world.

“This $20 billion expansion will bring our total investment in Arizona to more than $50 billion since opening the site over 40 years ago. As the only U.S.-based, leading-edge chipmaker, we are committed to building on this long-term investment and helping the United States regain semiconductor leadership.”

Intel does not release information about where its employees live, according to a company spokesperson, however the chipmaking giant is Chandler’s top employer and it is safe to say that a substantial number of the company’s 12,000 Arizona employees live in West Chandler and Tempe.

Two new computer-chip factories, to open in 2024 at Intel’s Ocotillo campus in south Chandler, will create more than 3,000 high-wage tech jobs and 15,000 indirect jobs.

With the addition of these two factories —to be named Fab 52 and Fab 62— Intel’s Ocotillo campus will house six chipmaking factories, or fabs.

The $20 billion expansion, the largest private investment in Arizona history, will create more than 3,000 high-wage high-tech jobs, 3,000 construction jobs and support an estimated 15,000 additional indirect jobs in the community.

Intel is the only semiconductor manufacturer with leading-edge process and packaging research capabilities in the country, and the company is investing in domestic capacity to support the surging worldwide demand for chips.

The two new fabs in Arizona will not only support growing demand for Intel’s products but will also provide committed capacity for the recently announced Intel Foundry Services.

“With Intel Foundry Services, Intel is opening its fab doors wide to serve the needs of foundry customers around the globe, many of whom are looking for more geographical balance in the semiconductor supply chain,” IFS President Randhir Thakur wrote recently. “Customers are enthusiastic about these capabilities.”

For more than 40 years, Arizona has been vital to Intel’s ability to create world-changing technology. It not only is investing to advance the ecosystem of innovation but the company is committed to protecting Arizona’s natural resources through its RISE strategy and sustainability efforts. For example, Intel has set an ambitious goal to achieve net positive water use by 2030.

In 2020, the Arizona site returned and restored approximately 95 percent of the freshwater used in manufacturing to the community and local watersheds through innovative water management practices and investments.



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