Daily Management Review

Intel will spend $20bn to build new chip plants


New Intel CEO Pat Gelsinger announced that the company will allocate $20bn to build two new microprocessor plants.

Jud McCranie
Jud McCranie
The plants will be located in the US state of Arizona, according to a statement on the corporation's website.

In addition, the company intends to outsource some operations not directly related to chip production, such as communication services, graphics solutions and the like. This will allow Intel to focus on research and development, new technology development and chip production at its own facilities. 

Intel's chip manufacturing plans have been the focus of analysts' attention as the global electronics and automotive markets have recently been experiencing a shortage of microprocessors.

Intel's new development priorities were outlined as part of an ambitious business stimulus plan unveiled by Mr Gelsinger. His appointment came to light in January, following of Bob Swan from the post. Specific reasons for Mr Swan's resignation were not disclosed, but it came shortly after Third Point, an investment fund, called on Intel management to seek "strategic alternatives". 

Third Point, known as an activist investor and owner of $1 billion worth of Intel shares, criticised management's actions in recent years, said the company was lagging behind rivals in microprocessor manufacturing and called for consideration of options for future development, which included selling some assets and splitting up the business.

source: forbes.com