Intel’s new chief executive, Pat Gelsinger, on Tuesday announced a plan to invest $ 20 billion in Arizona to expand the group’s semiconductor production capacity. A project that is in line with Washington’s desire to strengthen itself in strategic sectors.
Pat Gelsinger began to respond to strategic challenges from Intel, and the United States. At the helm of the group since February, the new CEO announced on Tuesday an investment project of 20 billion dollars to strengthen in the production “made in USA” of semiconductors. Two new factories will be built in Arizona on the Chandler site, he said on the occasion of an update on the group’s objectives and strategy.
With these new production capacities, Intel wants to respond to the global shortage of semiconductors, but above all to move up the slope in the face of competition from the Taiwanese group TSMC and the South Korean Samsung Electronics. To gain flexibility, Pat Gelsinger also announced the creation of a new branch, called “Intel Foundry Services”: a service for specialists in semiconductor materials.
Other upcoming investments
The former world number one in processors , which has historically been built around a vertically integrated model, could then announce other investments in production capacity this year, in the United States and in Europe.
“We have the ability to have leading products, with a leading supply chain and a leading cost structure in all areas of our business,” said Pat Gelsinger. The group has suffered in recent years technical setbacks in the production of the latest generation of chips, which have cast doubt on investors and led to the departure of the previous CEO, Bob Swan .
Strengthen supply chains
Washington has just launched a study to audit the supply chains of several strategic sectors, including electronic components. Faced with growing tensions with China, Joe Biden wants to strengthen American sovereignty over the production of components. An ambition that was already underway under Donald Trump’s mandate .
Like many countries, the United States suffers from a shortage of semiconductors, especially in the automotive sector. Several manufacturers such as Ford or GM have already closed factories for several days due to component shortages.
The group on Tuesday specified its activity forecasts for the year 2021. It is betting on a turnover of 76.5 billion dollars for the year, including 4.5 billion from the sale of its NAND memory chips South Korean SK Hynix. It will release its first quarter results on April 22.