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Intel to Build $5B Chipmaking Facility Near Phoenix

AZ Project To Start On Heels of New Oregon Chip Facility
February 21, 2011
Intel Corp. will spend more than $5 billion to build a new chip manufacturing facility at its site in Chandler, AZ. Intel President and CEO Paul Otellini made the announcement Friday during a visit by President Barack Obama to Intel's Hillsboro, OR facility.

Named Fab 42, the Arizona plant will be the most advanced high-volume semiconductor manufacturing facility in the world. Construction will begin in the middle of this year and is expected to be completed in 2013. The Arizona project could bring in at least 1,000 permanent jobs in addition to thousands of construction jobs.

Otellini made the announcement during a tour with President Obama of the company's Hillsboro, OR operations. Intel announced plans in October to spend $6-$8 billion over several years to upgrade several existing U.S. factories and build a new development plant at Hillsboro called D1X.

The expansions would support about 6,000-8,000 additional U.S. construction jobs during the building phase, and eventually add up to 1,000 high-skilled, high-wage manufacturing jobs.

With more than 15,000 workers in Oregon, Intel is the state's largest private employer. Intel's growth helped lead Oregon's transition from an economy based on timber and agriculture to a high-tech center of manufacturing and research and development. Building the Oregon facility will create about 3,000 construction jobs over two years, Otellini said.

"The structure will require 19 tons of steel, 40 miles of pipe, and 13,000 truckloads of cement. When finished, D1X will have a cleanroom as big as 4 football fields. It is scheduled for start-up in 2013; and it will be the first 14-nanometer microprocessor factory in the world."

In Chandler, AZ, Intel currently has more than 9,700 employees and has spent more than $12 billion adding high-tech manufacturing capacity in Arizona.

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