Intel announced Tuesday it will invest $20 billion expanding its semiconductor manufacturing operations by building two new fabrication facilities at its Ocotillo Campus in Chandler.

Chandler Mayor Kevin Hartke represented the city at Intel’s announcement of the largest private investment of any kind in Arizona history.

“Intel’s continued expansion of its largest, most advanced manufacturing site in the world exemplifies the presence of innovation in Chandler,” Mr. Hartke said. “A talented workforce, excellent quality of life, proactive planning and decades of infrastructure investments enable global innovators like Intel to excel in our community.”

Four existing factories at the Chandler campus are connected by a mile-long, automated superhighway to create a mega-factory network. The campus produces microprocessors using the company’s 10nm manufacturing processes.

Intel said its expansion will add more than 3,000 hi-tech, high-wage jobs and support an additional 15,000 jobs indirectly. Another 3,000 construction jobs will be employed while the fabrication facilities are being built. Intel said construction is slated to begin later this year.

“Intel is proud to, once again, expand our manufacturing capabilities in Arizona by constructing two new fabs (fabrication facilities) at our Ocotillo campus,” said Jim Evers, vice president and factory manager for Intel Corp. “We are proud to have a 40-year legacy of innovating in Arizona and are grateful to the City of Chandler for creating a business environment that encourages these types of investments.”

Micah Miranda, Chandler’s Economic Development Director, noted that an investment of this magnitude has significant supply chain implications for local businesses as Intel annually spends about $1.5 billion with Chandler-based suppliers and another $3 billion with other Arizona-based suppliers.
“Existing and prospective Intel suppliers can connect with our economic development team for assistance with office and industrial space site selection in Chandler,” Mr. Miranda said. Suppliers can use the initiate a project form, found at formstack.io/5A92C, to begin that process.

Intel’s presence in Chandler began in 1980 with its first production facility and it has grown to become the city’s largest employer. Intel celebrated 40 years in Chandler last year and it opened Fab 42, a $7 billion investment that created the most advanced manufacturing facility in the world. Tuesday’s announcement will add to its manufacturing presence and jobs with more than 15,000 Intel employees expected to be working in Chandler once the new fabs come online.

Gov. Doug Ducey and U.S. Secretary of Commerce Gina Raimondo also participated in Intel’s announcement Tuesday.

“We are excited to be partnering with the state of Arizona and the Biden administration on incentives that spur this type of domestic investment,” said Intel CEO Pat Gelsinger.
Intel expects to accelerate capital investments beyond Arizona, and Mr. Gelsinger said he plans to announce the next phase of capacity expansions in the U.S., Europe and other global locations within the year.