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Intel expanding Chandler campus with $20B investment, most in state history

Intel’s newest factory, Fab 42, became fully operational in 2020 on the company’s Ocotillo campus in Chandler, Arizona. (Courtesy photo/Intel Corporation)

PHOENIX — Intel on Tuesday announced a plan to invest $20 billion and expand its semiconductor manufacturing operations in Chandler by building two new fabrication facilities.

It marks the largest private sector investment in Arizona history and the company’s first large-scale foundry operation.

The announcement was part of a company webcast when Intel CEO Pat Gelsinger unveiled his vision for “IDM 2.0,” a major overhaul of the company’s integrated device manufacturing (IDM) model, according to a press release.

The new facilities in Chandler will aid the plan by significantly expanding Intel’s manufacturing capacity, as well as support increasing requirements for current products and customers and provide committed capacity for foundry customers.

More than 3,000 permanent high-tech, high-wage jobs are expected to be created with the expansion, in addition to over 3,000 construction jobs and approximately 15,000 local long-term jobs, according to the release. Intel is already Chandler’s largest employer.

“Today’s announcement means jobs, jobs, and more jobs for the state of Arizona,” Gov. Doug Ducey said in a press release. “It also proves once again that Arizona is at the cutting-edge of advanced chipmaking and manufacturing.”

“No company has been such an instrumental partner in Arizona’s growth and transformation over the years as Intel … when people think of semiconductor production, they think of Arizona, and that means tremendous things for our state, country and future generations of Arizonans.”

Micah Miranda, Chandler’s Economic Development Director, said in a press release that an investment of this magnitude has significant supply chain implications for the area as the company spends about $1.5 billion with Chandler-based suppliers and $3 billion with suppliers around the state.

“The economic impacts are very strong,” Miranda told KTAR News 92.3 FM. “It also allows Intel to scour the world for global talent and bring them here to Chandler which adds to our thriving cultural environment as well which is a major selling point for the community.”

Miranda said construction on the new facilities is set to begin later this year and target to be complete by 2024.

He added hospitality and tourism will benefit during construction as people come to Chandler to build-out the new facilities.

“They will occupy bed space, they will shop at our restaurants, at our malls,” Miranda said. “There’s going to be a tremendous economic impact that reverberates throughout Chandler’s economy as well as the state’s.”

Intel opened its first production facility in Chandler in 1980, and recently celebrated four decades in the city by opening Fab 42, a $7 billion investment that created one of the most advanced manufacturing facilities in the world.

Gelsinger said in the release the company plans to announce its next phase of capacity expansions within the United States, Europe and other global locations within the year.

KTAR News 92.3 FM’s Debra Dale contributed to this report. 

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