Intel to Invest $3.5 Billion to Upgrade New Mexico Site
- CEO Gelsinger has pledged to regain lead in technology
- Company says expansion in New Mexico will add 700 jobs
Photographer: Akos Stiller/Bloomberg
Intel Corp. said it will spend $3.5 billion to upgrade its chip factory in New Mexico, part of Chief Executive Officer Pat Gelsinger’s push to revitalize its manufacturing.
The world’s largest chipmaker has three production locations in the U.S. -- Rio Rancho, New Mexico; Hillsboro, Oregon; and Chandler, Arizona. The Rio Rancho site will get the investment to support Intel’s chip packaging technology, an extension of its capabilities that will add 700 jobs at the plant, the company said Monday.
Under Gelsinger, who rejoined Intel as CEO in February, Intel is trying to reclaim leadership in manufacturing technology, a position that was the keystone of its more than 30 years of dominance of the chip industry. He’s also expanding production capabilities to try to make Intel a contract manufacturing for other chipmakers, including rivals. Gelsinger has committed to spending $20 billion on that effort.