Intel will spend USD 3.5 billion on the upgrade of its chip manufacturing plant in New Mexico’s Rio Rancho, CEO Pat Gelsinger said on CBS programme 60 Minutes. The money, combined with the USD 20 billion the company plans to invest into new factories.
"We will not be anywhere near as focused on buybacks going forward as we have in the past," Gelsinger told 60 Minutes, as reported by Cnet. "That's been reviewed as part of my coming into the company, agreed upon with the board of directors."
In a statement confirming the news, Intel said the money will equip its New Mexico operations for the manufacturing of advanced semiconductor packaging technologies, including Foveros, the company's 3D packaging system. The move from system-on-chip to “system on package” will enable Intel to meet increasing computing performance needs for artificial intelligence, 5G and the edge, the company noted.
The multi-year investment is expected to create at least 700 high-tech jobs and 1,000 construction jobs and support and additional 3,500 jobs in the state. Construction is expected to begin in late this year.
Intel’s push into chips comes as the US looks to regain its first place in the semiconductor industry and amid chip shortfalls. Intel said last month that it hopes to start producing chips for the automobile sector within 6-9 months. President Joe Biden earlier said his administration wants to invest USD 50 billion into semiconductor manufacturing and research, under his USD 2 trillion infrastructure plan.
