Intel breaks ground on $20 billion chip plants in Chandler

PHOENIX — Construction is underway for two new semiconductor manufacturing plants at Intel’s Ocotillo campus in Chandler at a time when there’s a global chip shortage.

“We want to have Arizona and Intel be the unquestioned leaders for the world’s supply of leading-edge semiconductors,” Pat Gelsinger, CEO of Intel, said at a groundbreaking ceremony Friday.

The two new chip factories, or fabs, will be called Fab 52 and Fab 62 and are expected to be fully operational by 2024. That brings the total number of fabs on the Ocotillo campus to six.

Intel will spend $20 billion to build the new chip fabs and create more than 3,000 high-tech jobs as well as employ 3,000 construction jobs. This is the largest private-sector investment in Arizona history.

Gov. Doug Ducey called the groundbreaking of the new fabs on Friday “a monumental event” that provides “more evidence that Arizona is the best place in the world to manufacture semiconductor chips.”

“These are truly huge developments for our state,” he said.

The governor added the latest expansion by Intel will bring more jobs to Arizona as well as expand the company’s presence in the state.

Last year, Intel had an $8.6 billion economic impact in Arizona.

Ducey noted this comes as the supply for semiconductors worldwide hasn’t been able to meet the demand, which is slowing or halting the production of vehicles, smartphones, laptops, appliances and other items that need semiconductors to operate.

“Intel has stepped up in a big way to address that shortage,” Ducey said. “They put together a global strategy and that strategy is rooted right here in our home state of Arizona.”

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