Intel: $3.5 billion investment at New Mexico facility is critical to microchip future
Intel will be investing $3.5 billion in its New Mexico plant to manufacture what will fuel “a new era of innovation” and advanced computing as demands increase for the tiny microchips used in nearly all modern devices.
Intel INTC, +0.73% executives were joined by Gov. Michelle Lujan Grisham and other politicians at the plant in the Albuquerque suburb of Rio Rancho as they shared details of Intel’s global strategy as it looks to reclaim the top spot in the semiconductor sector.
Multibillion-dollar expansions also are underway at the company’s sites in Arizona, Oregon, Ireland and Israel.
Almost every aspect of life today depends on technology, and the demand for more manufacturing and advanced packaging systems for microchips is more critical than ever as more people are working from home and as many parts of education and communication have gone virtual, said Keyvan Esfarjani, the company’s senior vice president for manufacturing and operations.
Most of the world’s chip manufacturing happens in Asia. Intel is the only company currently producing in the U.S.
President Joe Biden’s infrastructure package proposed spending $50 billion to boost the semiconductor industry in the U.S., but New Mexico’s elected leaders said nearly $20 million in homegrown tax incentives and economic development funding were key to landing Intel’s latest investment.
Intel’s plan in New Mexico marks one of the largest single investments by a private company in the state. The governor said the incentives amount to a fraction of what Intel will be investing overall and of indirect jobs and revenue that will come from the project. Intel already employs about 1,800 workers at the site and has an annual economic impact of about $1.2 billion.
The project will result in 700 plant jobs, 1,000 construction jobs and an estimated 3,500 related jobs in the surrounding community. Local officials said the investment will serve as a shot in the arm as they look to rebound from the economic sting of the pandemic.
May 5, 2021