https://www.reuters.com/technology/intel-breaks-ground-20-bln-arizona-plants-us-chip-factory-race-heats-up-2021-09-24/ Skip to main content * World * Business * Legal * Markets * More [ ] Sign In Register Menu September 25, 20212:28 PM UTCLast Updated ago Technology Intel breaks ground on $20 bln Arizona plants as U.S. chip factory race heats up By Stephen Nellis * * * * * 2 minute read The logo for the Intel Corporation is seen on a sign outside the Fab 42 microprocessor manufacturing site in Chandler, Arizona, U.S., October 2, 2020. REUTERS/Nathan Frandino/File Photo/File Photo A handout photo shows construction equipment at the site of a future Intel Corp chip factory in Chandler, Arizona, U.S., September 23, 2021. Picture taken September 23, 2021. Courtesy of Intel Corp/ Handout via REUTERS. Pat Gelsinger speaks during a news conference in Tokyo July 15, 2014. REUTERS/Yuya Shino/File Photo/File Photo 1/3 A handout photo shows construction equipment at the site of a future Intel Corp chip factory in Chandler, Arizona, U.S., September 23, 2021. Picture taken September 23, 2021. Courtesy of Intel Corp/ Handout via REUTERS. Read More Sept 24 (Reuters) - Intel Corp (INTC.O) on Friday broke ground on two new factories in Arizona as part of its turnaround plan to become a major manufacturer of chips for outside customers. The $20 billion plants - dubbed Fab 52 and Fab 62 - will bring the total number of Intel factories at its campus in Chandler, Arizona, to six. They will house Intel's most advanced chipmaking technology and play a central role in the Santa Clara, California-based company's effort to regain its lead in making the smallest, fastest chips by 2025, after having fallen behind rival Taiwan Semiconductor Manufacturing Co Ltd (2330.TW). The new Arizona plants will also be the first Intel has built from the ground up with space reserved for outside customers. Intel has long made its own chips, but its turnaround plan calls for taking on work for outsiders such as Qualcomm Inc (QCOM.O) Amazon.com's (AMZN.O) cloud unit, as well as deepening its manufacturing relationship with the U.S. military. "We want to have more resilience to the supply chain," Intel Chief Executive Pat Gelsinger, who earlier in the week attended a White House meeting on the global chip shortage, told Reuters in an interview. "As the only company on U.S. soil that can do the most advanced lithography processes in the world, we are going to step up in a big way." Gelsinger said it was too early to say how much of the new plants' capacity would be reserved for outside customers. He said the plants would produce "thousands" of wafers per week. Wafers are the silicon discs on which chips are made, and each can hold hundreds or even thousands of chips. Intel rival TSMC has also purchased land to build its first U.S. campus in Phoenix, not far from Intel's location, where TSMC plans up to six chip factories, Reuters previously reported. Gelsinger said Intel plans to announce another U.S. campus site before the end of the year that will eventually hold eight chip factories. Reporting by Stephen Nellis in San Francisco; Editing by Dan Grebler Our Standards: The Thomson Reuters Trust Principles. More from Reuters Sign up for our newsletter Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox. Sign up Technology Technology * 8:15 PM UTC Canada's decision on Huawei 5G gear due in 'coming weeks' -Trudeau Canada's decision on whether to ban Huawei (HWT.UL) 5G gear, as all the other members of the so-called Five Eyes intelligence-sharing network have done, is likely to be made in "coming weeks," Prime Minister Justin Trudeau said on Tuesday. Technology Amazon launches robot to roll around house, Disney resort voice assistant 9:06 PM UTC Technology Microsoft to allow Epic Games, Amazon storefronts on its app store 8:23 PM UTC Technology Micron sees dip in chip demand as PC makers face parts shortages 10:13 PM UTC Technology Lucid to start deliveries of electric cars with range exceeding Tesla's in October 10:02 PM UTC Browse * World * Business * Legal * Markets * Breakingviews * Technology * Investigations * Lifestyle About Reuters * About Reuters * Careers * Reuters News Agency * Brand Attribution Guidelines * Reuters Leadership * Reuters Fact Check * Reuters Diversity Report Stay Informed * Download the App * Newsletters Information you can trust Reuters, the news and media division of Thomson Reuters, is the world's largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Follow Us * * * * * Thomson Reuters Products * Westlaw Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. * Onesource The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. * Checkpoint The industry leader for online information for tax, accounting and finance professionals. Refinitiv Products * Eikon Information, analytics and exclusive news on financial markets - delivered in an intuitive desktop and mobile interface. * Refinitiv Data Platform Access to real-time, reference, and non-real time data in the cloud to power your enterprise. * World-Check Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. * Advertise With Us * Advertising Guidelines * Cookies * Terms of Use * Privacy * Corrections * Site Feedback All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays. (c) 2021 Reuters. All rights reserved