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Intel investing $20B into two factories in Arizona

The Hill logo The Hill 3/24/2021 John Bowden
a close up of a sign: Intel investing $20B into two factories in Arizona © Getty Intel investing $20B into two factories in Arizona

Intel is investing in new chipmaking plants in Arizona as it struggles to keep up with competitors in the high-tech manufacturing field.

The Associated Press reported that the company said at a press conference on Tuesday that it would create two new facilities in Arizona employing about 3,000 people in total.

Intel has reportedly struggled to streamline its microchip manufacturing process in the face of competition and will be eligible for around $90 million in tax credits should it follow through with its plans in Arizona. Arizona lawmakers rushed through more funding for tax credits just ahead of the company's announcement, the AP noted.

"Let's bring semiconductor manufacturing back to the United States," Gov. Doug Ducey (R) said Tuesday, according to the news service. "And while we're at it, let's bring it back to Arizona."

The development comes amid a global shortage in computer chips, which has left companies from tech giants to vehicle manufacturers scrambling for alternative supply lines. Manufacturers have seen the shortages, originally blamed on the COVID-19 pandemic, fail to abate amid rising demand and sluggish supply.

The shortage caused a delay in the release of Apple's iPhone 12, which came out late last year.

President Biden signed an executive order in February directing officials to review the global semiconductor supply chain to address the shortages.

"The administration is currently identifying potential chokepoints in the supply chain and actively working alongside key stakeholders in industry and with our trading partners to do more now," White House press secretary Jen Psaki told reporters last month.

"At the same time, we are looking down the road, the long-standing issue with short supply of semiconductors ... is one of the central motivations for the executive order the president will sign," she added.


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