Tuesday, August 5, 2025

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Intel to Spend $20 Billion on New Chip Plants in Arizona

Intel has announced it will spend $20 billion towards building two new chip factories in Arizona, in a bid to address the worsening global semiconductor shortage that is wreaking havoc on a number of major goods-producing industries.

On Tuesday, Intel announced it will be allocating $20 billion towards the construction of two new factories in Chandler, Arizona, as part of its wider strategy that includes making computer chips for other companies and outsourcing whenever necessary. The strategy is part of newly-appointed chief executive Pat Gelsinger’s commitment for Intel to produce its own chips, rather than rely on its Asian competitors including TSMC and Samsung.

Construction on the factories is expected to commence this year, creating upwards of 3,000 construction jobs. Once completed, chip production is slated to begin in 2024, and will create at least 3,000 “permanent high-tech, high-wage” positions, and about 15,000 local long-term jobs.

Simultaneously, the company is also launching Intel Foundry Services, which will manufacture chips for other companies. This is a significant step for the California-based firm, which is expecting to differentiate itself by becoming both a designer and manufacturer. As part of the foundry service, Intel will build chips in the US and Europe, marking an important milestone given the current concentration of where chips are produced.

Following the news, Intel shares rose by over 7% in after-hours trading, before tapering off gains on Wednesday. In the meantime, shares in Samsung and TSMC dropped by nearly 1.3% and 3.9%, respectively.


Information for this briefing was found via Intel. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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