Intel to invest $3.5 billion to expand New Mexico operations

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Rio Rancho, USA: Intel to invest $3.5 billion to expand its New Mexico operations for the manufacturing of advanced semiconductor packaging technologies. The company said in a statement on Monday.

This major investment move comes after former VMware CEO Pat Gelsinger took that charge as new Intel CEO replacing Bob Swan early this year.

Intel to invest $3.5 billion

The $3.5 billion investment in the New Mexico facility will help to boost the advanced semiconductor packaging technologies including Foveros, Intel’s breakthrough 3D packaging technology.

This new technology enables Intel to build processors with compute tiles stacked vertically, rather than side-by-side, providing greater performance in a smaller footprint. It also allows Intel to mix and match compute tiles to optimize for cost and power efficiency.

The move from system-on-chip to “system on package” will enable Intel to meet increasing computing performance needs for artificial intelligence, 5G and the edge.

The multi-year investment is expected to create at least 700 high-tech jobs and 1,000 construction jobs and support an additional 3,500 jobs in the state. The company said it will start the planning activities immediately, with construction expected to kick off in late 2021.

Intel’s IDM 2.0 Strategy

“A key differentiator for our IDM 2.0 strategy is our unquestioned leadership in advanced packaging, which allows us to mix and match compute tiles to deliver the best products,” said Keyvan Esfarjani, Intel SVP and GM of Manufacturing and Operations.

“We’re seeing tremendous interest in these capabilities from the industry, especially following the introduction of our new Intel Foundry Services. We’re proud to have invested in New Mexico for more than 40 years and we see our Rio Rancho campus continuing to play a critical role in Intel’s global manufacturing network in our new era of IDM 2.0,” added Esfarjani.

(Image credit – Intel) Intel’s Rio Rancho manufacturing facility in New Mexico

Intel said that investing in manufacturing operations is a key component of its recently announced IDM 2.0 strategy. The technologies currently developed and manufactured at the Rio Rancho site — Intel Optane technology, embedded multi-die interconnect bridge and Intel silicon photonics technology. They play important roles in Intel’s new era of innovation by simplifying and optimizing semiconductor memory, packaging, and connectivity.

Intel’s $3.5 billion investment in New Mexico

“Intel’s $3.5 billion investment in New Mexico will create 700 new jobs in the next three years and establish the Rio Rancho campus as the company’s domestic hub for advanced semiconductor manufacturing,” said New Mexico Gov. Michelle Lujan Grisham.

“With this exciting development, we are already seeing the benefits of this year’s legislation expanding LEDA, generating high-quality and high-paying jobs for New Mexicans. The state and Intel have a 40-year partnership, and today, with innovative economic development tools and global demand for this technology, we can celebrate a new generation of workers and job growth at Intel’s New Mexico manufacturing plant,” added Gov. Grisham

Since 1980, Intel has invested $16.3 billion in funds to support its New Mexico operations and currently employs more than 1,800 people at the site. Its annual economic impact in the state is $1.2 billion, based on 2019 data.

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