Intel says it will spend $20bn to build two new semiconductor factories in Arizona, the linchpin of an ambitious turnround strategy that also includes outsourcing whenever necessary and launching a new service to make computer chips for other companies.
The multiyear strategy from newly-appointed chief executive Pat Gelsinger demonstrates Intel’s commitment to build the majority of its own chips, ending any discussion that it should withdraw from manufacturing after falling behind Asian competitors such as Taiwan Semiconductor Manufacturing Company and Samsung.
At the same time, the group is launching Intel Foundry Services to produce chips for other companies, a major change for the Santa Clara, California-based company whose differentiation has come from being both the designer and manufacturer.