Intel Enters Contract Foundry Business, Sets $20 Billion for Arizona Fab

Intel Foundry Service, starting today, will be Intel’s new business segment headed by Dr. Randhir Thakur. This was announced in Pat Gelsinger’s public webcast and discloses some key announcements from Intel including their 7nm situation.

New Intel CEO Pat Gelsinger’s main announcement is their new fabrication business which will operate in a similar vein to TSMC, Samsung and GlobalFoundries but will be rooted heavily in the west with focus of the foundry targeting the US and EU region where only 20% of the global supplies are originating from. Intel wants take advantage of that vacuum and hopes to grow from there.

Pat Gelsinger has signed off on a $20 billion Arizona fab for Intel Foundry Services where two new full semicon foundries will be built. The new facilities is expected to also provide 15,000 long-term jobs once built.

In related news, Samsung announced a few weeks ago that they will be expanding their US fab with new facilities and will invest in $17 billion in the expansion. This follows a previous news that the US government is pursuing more semicon foundries in US soil. Gelsinger states that government incentives are not just the only reason for this project but a proper strategy for Intel going forward.