Chip giant Intel has announced a $ 3.5 billion investment to expand its manufacturing facility in Rio Rancho, New Mexico. The multi-year investment aims to modernize the facility to manufacture advanced semiconductor packaging technologies, including Fovero’s 3D packaging technology.
The investment follows another announcement by Intel earlier this year that it will build two new semiconductor plants in Arizona at a cost of $ 20 billion. This series of investments is part of an overhaul of the Integrated Device Manufacturing (IDM) model by Pat Gelsinger, Intel’s new CEO, including the creation of a new semiconductor manufacturing company called Intel Foundry Services.
“We are proud to have invested in New Mexico for more than 40 years, and we see our Rio Rancho campus continue to play a critical role in Intel’s global manufacturing network in our new era of IDM 2.0,” said Keyvan Esfarjani. Senior vice president of Intel and general manager of manufacturing and operations.
The New Mexico investment comes just weeks after Gelsinger promised his company would ramp up production in existing units to help companies get out of the current semiconductor die shortage.
Gelsinger described 2021 as a “decisive year” for the company last month, as Intel exceeded analysts’ sales expectations for the first quarter of 2021, thanks largely to the strong growth in PC sales.
The Rio Rancho facility is one of Intel’s oldest manufacturing facilities and is currently developing and manufacturing Intel Optane SSD technology, the embedded multi-die interconnect bridge, and Intel silicon photonics technology, according to the company.
In a press release, the chip manufacturer announced that the new investment would create at least 700 high-Tech- Creates jobs in the state and supports an additional 3,500 jobs in the state.