Intel invests $7 billlion to bake 7nm chips in Fab 42 in Arizona

Posted on Wednesday, February 08 2017 @ 20:31 CET by Thomas De Maesschalck
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Intel announces it will invest over $7 billion to complete its Fab 42 in Chandler, Arizona for the production of 7nm computer chips. The plant was originally intended for 14nm production but got mothballed for a couple of years due to lack of demand for the company's chips.

Back in 2014, Intel said it would delay Fab 42 indefinitely because it projected that its total fab utilization would remain at 80 percent with existing production capacity, thus the chip giant saw no need to complete the project.

Today's announcement was made by U.S. President Donald Trump and Intel CEO Brian Krzanich at the White House with the usual fanfare. Completion of the fab is expected within three to four years and the press release below claims the factory will directly create around 3,000 high-tech jobs and is expected to create over 10,000 long-term jobs in Arizona.

Once it's completed, Fab 42 is expected to be the world's most advanced semiconductor plant. Presumably, Intel will be bringing in EUV lithography tools. A video clip of the announcement can be viewed below. Towards the end of the clip, you can see Intel's CEO showing off a 10nm wafer.

Intel Corporation today announced plans to invest more than $7 billion to complete Fab 42, which is expected to be the most advanced semiconductor factory in the world. The high-volume factory is in Chandler, Ariz., and is targeted to use the 7 nanometer (nm) manufacturing process. It will produce microprocessors to power data centers and hundreds of millions of smart and connected devices worldwide. The announcement was made by U.S. President Donald Trump and Intel CEO Brian Krzanich at the White House.

Intel Corporation on Tuesday, Feb. 8, 2017, announced plans to invest more than $7 billion to complete Fab 42. On completion, Fab 42 in Chandler, Ariz., is expected to be the most advanced semiconductor factory in the world. (Credit: Intel Corporation) Intel Corporation on Tuesday, Feb. 8, 2017, announced plans to invest more than $7 billion to complete Fab 42. On completion, Fab 42 in Chandler, Ariz., is expected to be the most advanced semiconductor factory in the world.

The completion of Fab 42 in 3 to 4 years will directly create approximately 3,000 high-tech, high-wage Intel jobs for process engineers, equipment technicians, and facilities-support engineers and technicians who will work at the site. Combined with the indirect impact on businesses that will help support the factory's operations, Fab 42 is expected to create more than 10,000 total long-term jobs in Arizona.

Context for the investment was outlined in an e-mail from Intel's CEO to employees.

"Intel's business continues to grow and investment in manufacturing capacity and R&D ensures that the pace of Moore's law continues to march on, fueling technology innovations the world loves and depends on," said Krzanich. "This factory will help the U.S. maintain its position as the global leader in the semiconductor industry."

"Intel is a global manufacturing and technology company, yet we think of ourselves as a leading American innovation enterprise," Krzanich added. "America has a unique combination of talent, a vibrant business environment and access to global markets, which has enabled U.S. companies like Intel to foster economic growth and innovation. Our factories support jobs -- high-wage, high-tech manufacturing jobs that are the economic engines of the states where they are located."

Intel is America's largest high-technology capital expenditure investor ($5.1 billion in the U.S. 2015) and its third largest investor in global R&D ($12.1 billion in 20151). The majority of Intel's manufacturing and R&D is in the United States. As a result, Intel employs more than 50,000 people in the United States, while directly supporting almost half a million other U.S. jobs across a range of industries, including semiconductor tooling, software, logistics, channels, OEMs and other manufacturers that incorporate our products into theirs.

The 7 nm semiconductor manufacturing process targeted for Fab 42 will be the most advanced semiconductor process technology used in the world and represents the future of Moore's Law. In 1968 Intel co-founder Gordon Moore predicted that computing power will become significantly more capable and yet cost less year after year.

Making a leading-edge computer chip is the most complex manufacturing process in the world, engineering magic that turns sand into semiconductors, the foundation of the knowledge economy.

The chips made on the 7 nm process will power the most sophisticated computers, data centers, sensors and other high-tech devices, and enable things like artificial intelligence, more advanced cars and transportation services, breakthroughs in medical research and treatment, and more. These are areas that depend upon having the highest amount of computing power, access to the fastest networks, the most data storage, the smallest chip sizes, and other benefits that come from advancing Moore's Law.
Intel Arizona fab


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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