Skip to main content

Intel to invest $7 billion in Arizona plant where it will build 7nm processors

intel 7b arizona plant fab 42
Intel
Intel will invest $7 billion in a semiconductor factory in Chandler, Arizona, where it will build its next generation of processors.

CEO Brian Krzanich made the announcement on Wednesday alongside President Donald Trump in the Oval Office. The existing plant, named Fab 42, will take three to four years to complete, and will be “the most advanced semiconductor factory in the world,” according to Intel. It will be the company’s third factory in Arizona, and will employ up to 3,000 people.

If those construction goals go according to plan, Fab 42 will be the location where Intel builds and develops its highly anticipated 7nm chips, which Intel has called the “most advanced semiconductor process technology used in the world.”

Intel is in a race to maintain its position as a market leader for processors. Ryzen, the new processors from AMD, one of Intel’s chief competitors, is hot on the chipmaker’s heels, according to recent leaks. This fiercer competition will force Intel, as well as Nvidia, to react by improving the performance of their chips or even cutting costs. Just this week, reports surfaced that Intel will be rolling out updates for its Kaby Lake processors, as well as reducing costs in response to Ryzen.

The eventual construction of this new production facility is poised to make an impact even further into the future. It will be a vital move for Intel if it hopes to get a leg up on competition by getting a 7nm processor to market as soon as possible.

“Intel’s business continues to grow, and investment in manufacturing capacity and [research and development] ensures that the pace of Moore’s law continues to march on, fueling technology innovations the world loves and depends on,” Krzanich said in a press release.

Speculation regarding the announcement in conjunction with Trump had been simmering for a few weeks. Krzanich said announcing the deal at the White House was a sign of support for the “tax and regulatory policies that we see the administration pushing forward.”

Reuters reports that discussions in the Oval Office focused solely on the plant — the fact that Intel had joined a legal case against Trump’s travel ban did not come up.

“America has a unique combination of talent, a vibrant business environment, and access to global markets, which has enabled U.S. companies like Intel to foster economic growth and innovation,” Krzanich added. “Our factories support jobs — high-wage, high-tech manufacturing jobs that are the economic engines of the states where they are located.”

Editors' Recommendations

Jonathan Keane
Former Digital Trends Contributor
Jonathan is a freelance technology journalist living in Dublin, Ireland. He's previously written for publications and sites…
This deal knocks $130 off Lenovo’s Surface-style Chromebook
The new Lenovo Chromebook Duet 5 sitting on a desk.

If you’re in the market for one of the best tablets but would like to save some money along the way, Lenovo is offering a significant discount on the Chromebook Duet 5. This is a great tablet for students and professionals and it makes a lot of sense if you’ve had your eye on the Microsoft Surface Pro lineup of tablets but are shopping on a budget. While this tablet would regularly cost $499, right now Lenovo has it discounted to just $369. That’s a savings of $130, and free shipping is included. In many locations Lenovo will even let you pick it up at the nearest Best Buy.

Why you should buy the Lenovo IdeaPad Duet 5
The Lenovo IdeaPad Duet 5 Chromebook is a 2-in-1 tablet that can compete in many ways with not only the best 2-in-1 tablets, but also the super popular Microsoft Surface Pro. On paper it lacks in specs when put next to high end tablets, but when it comes to actual user experience, the IdeaPad Duet 5 Chromebook has nearly as much to offer. Chromebooks are meant to be simple, after all, and with 8GB of RAM and a Qualcomm Snapdragon processor, it can get you through long work days in a word processor, creative jam sessions, or late nights buried in homework. It has a detachable keyboard and touch pad, a nice bit of design that gives the IdeaPad Duet 5 laptop ergonomics when you want it.

Read more
This Lenovo laptop with 128GB of RAM is $4,500 off right now
A Lenovo ThinkPad P16 with a graphics program being displayed on it.

If you want a laptop that will exceed the performance of the best desktop PCs and you're willing to shell out for such a machine, then you should turn your attention towards the Lenovo ThinkPad P16 Intel Mobile Workstation. In one of the most special offers from the manufacturer, the device is $4,500 off, which brings its price down to $5,489 from its estimated market price of $9,989. If you never want to experience slowdowns and crashes ever again, this is the investment that you need to make, but you need to hurry because the 45% discount will not last forever.

Why you should buy the Lenovo ThinkPad P16
If there is anything to know about the ThinkPad P16, it is how high the raw stats are for a laptop. For example, in our laptop buying guide, we listed 16GB or more RAM as being good for intensive application. The ThinkPad P16? Oh, it has 128GB of RAM. Plus it has 4TB of SSD storage, a beautiful 3840 x 2400 resolution touchscreen, and runs on a top-of-the-line 12th Gen i9 processor. Absolutely wild stats for a laptop and something you should check out yourself. It's no wonder that ThinkPad laptops are considered amongst the best business laptops.

Read more
Apple Vision Pro raises the bar (and price) of AR headsets
A person wearing Apple's Vision Pro headset.

Apple announced its first XR headset, the Vision Pro, at WWDC 2023. This begins a new era of augmented and virtual reality hardware for the company, which has captured the lead in many other consumer electronics categories started by other manufacturers. What Apple adds to the equation is style, integration, and the overall thoughtfulness that comes from patient deliberation.

After years of rumors, the Vision Pro is finally here. Here's what we know so far.

Read more