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Intel: Upcoming US Fab Will Be a Small City, to Cost $60 to $120 Billion

Intel
(Image credit: Intel)

Intel has revealed some additional details about its upcoming brand-new fab complex in the U.S. Patrick Gelsinger, chief executive of Intel, said that the new fab campus will cost between $60 billion and $120 billion, will include multiple modules capable of processing wafers using Intel’s advanced process technologies, and chip packaging facilities. In addition, the company aims to build it adjacent to a university to simplify the hiring of new personnel. 

As part of its IDM 2.0 strategy, Intel is set to decide on the exact location of its next major semiconductor manufacturing hub in the U.S by the end of this year. The fab will include between six and eight modules that will produce chips using the company’s leading-edge fabrication processes, will be able to package chips using Intel’s proprietary techniques like EMIB and Foveros, and will also run a dedicated power plant, Pat Gelsinger said in an interview with the Washington Post.  

Each semiconductor fabrication module will cost between $10 billion and $15 billion, so Intel’s investments into the hub over the next decade could be as ‘low’ as $60 billion and could top $120 billion.

“We are looking broadly across the U.S.,” Gelsinger told the Washington Post. “This would be a very large site, so six to eight fab modules, and at each of those fab modules, between 10- and $15 billion. It's a project over the next decade on the order of $100 billion of capital, 10,000 direct jobs. 100,000 jobs are created as a result of those 10,000, by our experience. So, essentially, we want to build a little city.”

At this point, Intel does not disclose which nodes the first module of the fab will support. Yet, since it will start operations sometime in 2024 at the earliest, the new facility will probably produce chips using the Intel 4 and the Intel 3 manufacturing technologies. Eventually, the fab complex will adopt more advanced fabrication technologies. The production capacity of the upcoming fab is unknown, so is its location. Intel needs to build its next manufacturing in a location with well-developed infrastructure, adequate supply of water and energy. Also, the company plans to build it near big cities with universities in a bid to higher qualified personnel. 

“We're engaging with a number of states across the United States today who are giving us proposals for site locations, energy, water, environmentals, near universities, skill capacity, and I expect to make an announcement about that location before the end of this year,” Gelsinger said.

Earlier this year, Intel outlined plans to spend $20 billion on advancing its manufacturing operations in Arizona. In addition, the company will announce a location for its brand new fab hub, such as those the company has in Arizona and Oregon.

  • Howardohyea
    I hope the investment pays off
    Reply
  • jkflipflop98
    How could it not? Everyone on Earth is hungry for more silicon powered devices.
    Reply
  • Co BIY
    jkflipflop98 said:
    How could it not? Everyone on Earth is hungry for more silicon powered devices.

    I agree with this. Worldwide demand may easily outstrip all the production all the players worldwide can put into place over many years.

    Worldwide wealth is growing very fast. Electronics and particularly complex integrated circuits are replacing a lot of other established goods (think books, movie theaters, educational facilities) and they are a "preferred good" in economic terms (meaning that the richer you are the more you spend on the good as percentage of your income)
    Reply
  • jkflipflop98
    We usually call this a "greenfield site" as traditionally Intel has purchased large swaths of empty space to build a brand-new campus. The site where Ronler Acres (the name of the farm that used to exist before it was an Intel site) sits was just a huge empty farm field until the company turned it into what you see today. It's really nice to have all your suppliers already near your site and ready to serve the business, but a facility of the magnitude they're talking about here will cause those supporting facilities to also move into the area.

    It's not just Intel that's moving into the new neighborhood. ASML, TEL, Hitachi, KLA, handfuls of gas and chemical vendors, and a whole raft of others are coming with them. A project like this has the ability to single-handedly revive an entire section of the country. Somewhere that jobs are desperately needed. Not just high-end technical jobs either. Something like this can employ hundreds of construction crews for decades. The local infrastructures all need upgraded - water supplies and sewer returns and roadways need widened and stoplights installed and new sidewalks poured. . . it goes on and on.
    Reply
  • thisisaname
    Co BIY said:
    I agree with this. Worldwide demand may easily outstrip all the production all the players worldwide can put into place over many years.

    Worldwide wealth is growing very fast. Electronics and particularly complex integrated circuits are replacing a lot of other established goods (think books, movie theaters, educational facilities) and they are a "preferred good" in economic terms (meaning that the richer you are the more you spend on the good as percentage of your income)

    A little off topic but still relatively relevant. Worldwide wealth is indeed growing but growing at a larger rate is the wealth gap and if that is not reduced then most people are going to be less able to afford all this shinny new technology.
    Reply
  • jkflipflop98
    Just run your own race and stop worrying about how much the CEO makes. Yeah, he makes a lot more than you. Is that really a problem that needs to be solved? No, it isn't.
    Reply
  • waltc3
    It will be nice when Intel can at last field some competitive products on the CPU front and sell them as opposed to talking about them. It seems it always takes AMD to light a fire under Intel's rump, for some reason. That's actually been historically true since ~1999. The things Intel has offered--Itanium/RDRAM, for instance, the markets have soundly rejected. This is a very strange announcement from Intel--I guess it's a lame bid to prop up Intel's sinking stock prices. Vaporware announcements carry little weight these days. The markets want products, not intentions.
    Reply
  • USAFRet
    waltc3 said:
    It will be nice when Intel can at last field some competitive products on the CPU front and sell them as opposed to talking about them. It seems it always takes AMD to light a fire under Intel's rump, for some reason. That's actually been historically true since ~1999. The things Intel has offered--Itanium/RDRAM, for instance, the markets have soundly rejected. This is a very strange announcement from Intel--I guess it's a lame bid to prop up Intel's sinking stock prices. Vaporware announcements carry little weight these days. The markets want products, not intentions.
    "at last"?
    Lets not forget the long string of AMD fails.
    Reply
  • 10tacle
    waltc3 said:
    It will be nice when Intel can at last field some competitive products on the CPU front and sell them as opposed to talking about them. It seems it always takes AMD to light a fire under Intel's rump, for some reason.

    It depends on your application. If you want a well balanced productivity and gaming system and run say two 1440p monitors or a single 4k monitor, then yes, AMD has been the champion of that since the first generation of Ryzen (which was the first time AMD got that throne back since the Bulldozer disaster).

    On the other hand, if you want mostly a high FPS (100+) 1080p or 1440p single monitor G-sync or FreeSync gaming system, then Intel chips continue to defeat AMD on that as pretty much they have since 2011 and Intel's Second generation Core-I series Sandy Bridge. There are years worth of CPU benchmarks here on Tom's and elsewhere showing that.
    Reply
  • Chung Leong
    What the chance of this project not landing in Texas?
    Reply