Intel CEO Pat Gelsinger announced on Tuesday that it will splurge $20 million for the expansion of two new advanced plants in Arizona. The news comes amid a worldwide shortage of semiconductor chips that is snarling industries from automobiles to electronics. Worrying signs arise for the US as it lags behind in semiconductor manufacturing.
“Intel is and will remain a leading Developer of process technology, a major manufacturer of semiconductors, and the leading provider of silicon globally,” Gelsinger said.
Intel is planning to enact as a foundry for other chip companies that emphasizes semiconductor outlays. Significantly, it mentioned a requirement of a subsidiary to instill the manufacturing of these chips. Intel will entitle its Foundry Subsidiary as Intel Foundry Services and will be led by Randhir Thakur, a current Intel senior vice president.
Why is Intel planning an expansion to its existing factories? Intel’s commitment to manufacturing has national security implications. Intel constantly supports the US government initiatives as it foresees the enhancement of competitiveness of the US semiconductor industry across the world.
Intel currently operates in Four Frontiers, called water fabs in the United States. Alongside the expansion of the existing plant in Arizona, it also has its fabs in Massachusetts, New Mexico, and Oregon. Recently, in executive action, Biden Administration portrays the pathway that could boost American chip companies’ structure with additional Government support. The 100-day review alongside fundings could help Intel level the playing field in the global competition for semiconductor manufacturing leadership.