Newly appointed Chief Executive of world’s largest chip manufacturer Intel Corp (INTC) Patrick P. Gelsinger says the company has allocated $20 billion to build two new chip plants in Arizona.
Gelsinger claims this is part of greater plans Intel will be venturing into to expand its advanced chip manufacturing business. The cash set aside will also be used to open Intel’s factories to outside customers.
Asian companies have been increasing their market share in the chip industry led by Taiwan Semiconductor Mfg. (TPE: 2330) and Samsung Electronics Co (KRX: 005930).
Last year Intel experienced some manufacturing delays which resulted to a slight plunge of its stock. This strategy by the new CEO will for sure restore the company’s confidence in the industry.
Analysts says this is a strategic move as it will shift a technological balance of power back to United States and Europe since a large chunk of chip manufacturing activities had been shifted to Taiwan.
During recent interview, Gelsinger confirmed Intel has fully resolved its manufacturing problem issues further adding the company is concentrating on expanding its chip manufacturing capacity apart from the upcoming two new plants.
The new factories will create 3,000 permanent job opportunities, the CEO said they have already secured customers for the new plants but he did not reveal any names.