Intel Announces $3.5 Billion Investment for New Mexico Expansion
Tech leader Intel Corporation has announced that it will invest $3.5 billion to expand its New Mexico operations in a press conference, May 3.
The latest investment is set to prepare its New Mexico manufacturing plant for the manufacturing products relying on more advanced semiconductor packaging technologies. This reportedly includes Foveros, Intel's breakthrough packaging technology first introduced in 2019 and is used for high-performance 3D ICs.
In its press conference, Intel also revealed that the new investment - expected to run for a couple of years - is expected to create "at least 700 high-tech jobs and 1,000 construction jobs and support an additional 3,500 jobs in the state." The tech leader is looking to begin construction sometime in late 2021.
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Foveros and Intel's Forward Step
The Foveros packaging technology is a game-changing development that allowed Intel to create processors whose chips or stiles are stacked vertically, as opposed to the conventional horizontal layout, resulting in more computing power for less footprint. With this vertically stacked packaging, Intel has experimented with different tiles to arrive at the best solutions in terms of power and cost.
With this shift from the system-on-chip to a "system on package" solution, Intel is looking to meet the heavier computing requirements for 5G tech, artificial intelligence, and more.
This is now made through Intel's global factory network, offering the company a competitive advantage that allows for product optimization and better supply and economic resilience. The recent announcement is a part of its IDM 2.0 strategy: the team-up between the Intel internal factory network, new foundry services, and additional capacity from third-party suppliers. Intel now develops and manufactures its latest technologies at its Rio Rancho site, in New Mexico, including its Optane and silicon photonics technology.
Intel in New Mexico
"Intel's $3.5 billion investment in New Mexico will create 700 new jobs in the next three years and establish the Rio Rancho campus as the company's domestic hub for advanced semiconductor manufacturing," said Gov. Michelle Lujan Grisham of New Mexico. "With this exciting development, we are already seeing the benefits of this year's legislation expanding LEDA, generating high-quality and high-paying jobs for New Mexicans."
Gov. Grisham recalled Intel's partnership with the state for more than four decades. And with the new investment, the "innovative economic development tools," and the demand for the technology developed at the New Mexico site, she said: "we can celebrate a new generation of workers and job growth at Intel's New Mexico manufacturing plant."
Intel shares in the accompanying news release that since 1980, it has invested about $16.3 billion in capital for its operations in New Mexico, where it currently has more than 1,800 employees. Based on 2019 data, the site alone is responsible for an annual economic impact equivalent to $1.2 billion. Additionally, the tech company has expressed commitment toward its corporate responsibility and helping meet community needs.
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