Intel announces Arizona expansion as chipmaker seeks footing

CHANDLER, ARIZONA (AP) — Intel announced on Tuesday it will build two new factories in Arizona and outsource more of its production as a new chief executive officer (CEO) looks to turnaround the struggling chipmaker.

The California-based company said the Arizona expansion will cost about USD20 billion and create 3,000 permanent jobs as Intel builds a foundry business to provide chips for other firms. More construction in the United States (US), Europe and elsewhere could be announced over the next year, CEO Pat Gelsinger said in a video outlining his vision for the company’s transformation.

“The unprecedented demand for technology has created even more need for the innovative products Intel creates,” Intel’s senior vice president of manufacturing and operations Keyvan Esfarjani told reporters outside the company’s plant in Chandler, Arizona.