Fab 42 is expected to create more than 10,000 long-term jobs in Arizona combined with the indirect impact on businesses that will support the factory’s operations, according to Intel.
Intel CEO Brian Krzanich made the announcement today during a meeting with President Donald Trump in the White House.
“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,” Krzanich said. “This factory will help the U.S. maintain its position as the global leader in the semiconductor industry.”
Fab 42 will use the 7-nanometer manufacturing process to produce microprocessors to power data centers and hundreds of millions of smart and connected devices.
The chips made using this process will power the most sophisticated computers, data centers, sensors and other high-tech devices, enabling artificial intelligence, more advanced cars and transportation services, and breakthroughs in medical research and treatment, according to Intel.
Gov. Doug Ducey said Intel's expansion is "huge news" for the state.
"With thousands of jobs and a $7 billion investment, Fab 42 will create a ripple effect throughout our economy," Ducey said in a statement. "This means jobs for Arizonans, and a historic investment in our state. Intel's commitment to Arizona speaks volumes about our workforce, advanced educational infrastructure, business environment and commitment to technology and innovation. This represents a core area of Arizona expertise, advanced engineering and manufacturing."
Fab 42, which was completed at the end of 2013 but never opened, was supposed to be the manufacturing plant for the 14-nanometer chips. It has remained empty until the company decided what to do next.
“Intel is a global manufacturing and technology company, yet we think of ourselves as a leading American innovation enterprise,” Krzanich said. “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.”
According to Santa Clara, California-based Intel (Nasdaq: INTC), it is America’s largest high-technology capital expenditure investor, with $5.1 billion in the U.S. in 2015, and the third largest investor in global R&D, with $12.1 billion in 2015.
The majority of Intel’s manufacturing and R&D is in the U.S. and the company employs more than 50,000 people in the country.
Hayley Ringle covers technology and startups for the Phoenix Business Journal.
