Intel to break ground on $20bn chip fabs this week

21 September 2021 | Antony Savvas

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Intel will this Friday break ground on two new chip fabs in Arizona, worth $20 billion, to serve the growing needs of the PC, server, mobile and data centre industries.

The company previously announced plans to build the fabs at its Ocotillo campus in Chandler, Arizona.

“The new factories will support expanding requirements of Intel’s products and provide committed capacity for foundry customers,” said the firm.

On 24 September, Intel CEO Pat Gelsinger will be joined by government and community leaders for the ground-breaking ceremony to mark the “largest private-sector investment in Arizona history”, Intel said.

The $20 billion project is designed to “help bring geographical balance to the global supply chain”, the company added, amid an ongoing global chip shortage.

This April, Intel launched an updated range of data centre and 5G network chips that promise to deliver much faster data throughput with the aid of integrated AI support.

The new 3rd Gen Intel Xeon Scalable processors were integrated into the data centre solutions provided to customers by Intel's partners, as the chip maker strove to win back market share it has lost to the likes of AMD, Nvidia, Arm and Broadcom.

The processors were said to deliver a significant performance increase compared with the prior generation, with an “average 46% improvement on popular data centre workloads”.

In June, the company broke up its data centre unit and appointed new heads to help it fight off the increasing competition in the sector.