Invest 20 billion dollars! Intel officially opens two new chip plants in Arizona

Published: Sep 26, 2021 09:21 (GMT+8)

On Friday (24th US Eastern time), Intel officially broke ground on two new chip plants in Arizona, which will produce chips for external contract manufacturers, in order to strengthen the competition between Intel and TSMC.

The two new chip plants, named Fab 52 and Fab 62, will be built at Intel's Ocotillo campus in Chandler, Arizona, at a cost of $20 billion, bringing the total number of Intel factories in the Ocotillo campus to six. Intel has invested more than $50 billion in Arizona since it began making chips in the state 40 years ago.

It is reported that these factories will use Intel's state-of-the-art chip production process, which Intel hopes to regain its position as a leader in chip manufacturing in 2025.

Intel is still one of the largest chipmakers, but its technological advantage has been replaced by contract manufacturers such as TSMC and Samsung.

According to reports, two new plants in Arizona are expected to be fully operational in 2024, not only to support the production of Intel's internal products, but also to provide services to external customers. Intel has long been making its own chips, but the company has begun to transform itself into an outside company that makes chips.

Intel said this year that it would use its expanded manufacturing capacity in the US to win over customers such as Apple and Qualcomm, two of TSMC's top customers.

"We want to be more flexible to the supply chain," Pat Geisinger (Pat Gelsinger), Intel's chief executive, told media at a White House chip-themed conference earlier this week. "as the only company in the United States that can produce the world's most advanced lithography processes, we will make great strides forward."

Mr Geissinger said it was too early to say how much capacity of the new plant would be left to outside customers. He said the factories would produce "thousands" of wafers a week. Wafers are the wafers that make chips, and each wafer can be made into hundreds or even thousands of chips.

Intel rival TSMC is also reported to have bought land in (Phoenix), Phoenix, to build its first American park not far from where Intel is located. TSMC plans to build up to six chip plants in Phoenix.

Intel's Geissinger said Intel plans to announce the location of a new US campus by the end of the year, which will eventually have eight chip factories.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
[SMM Chromium Flash] Global Steel Demand Forecast Turns Flat in 2026 as China Weakens, Recovery Expected in 2027
Oct 16, 2026 22:28 (GMT+8)
[SMM Chromium Flash] Global Steel Demand Forecast Turns Flat in 2026 as China Weakens, Recovery Expected in 2027
Read More
[SMM Chromium Flash] Global Steel Demand Forecast Turns Flat in 2026 as China Weakens, Recovery Expected in 2027
[SMM Chromium Flash] Global Steel Demand Forecast Turns Flat in 2026 as China Weakens, Recovery Expected in 2027
The World Steel Association (worldsteel) revised its global steel demand outlook on 12 October, forecasting demand to remain broadly unchanged at 1.722 billion tonnes in 2026, before increasing by 1.7% to 1.752 billion tonnes in 2027. The downgrade largely reflects weaker-than-expected demand in China, where steel demand is projected to contract by 2.0% in 2026 and a further 1.0% in 2027. Outside China, demand is expected to grow by 1.5% in 2026 and accelerate to 4.0% in 2027. For the chromium market, the subdued global steel outlook suggests that a broad-based recovery in steel-related demand may take longer to materialize, although prospects vary by region. India’s steel demand is forecast to grow by 7.9% in 2026, while demand in the United States is projected to increase by 2.0%. These divergent regional trends provide important context for chrome ore and ferrochrome producers assessing end-market conditions. However, the forecast covers total steel demand rather than stainless steel specifically, so it does not directly quantify future chromium consumption.
Oct 16, 2026 22:28 (GMT+8)
[SMM Chromium Flash] South Africa’s August Chrome Ore Exports Fall 11% as Ferrochrome Shipments Rebound 20%​
Oct 16, 2026 22:13 (GMT+8)
[SMM Chromium Flash] South Africa’s August Chrome Ore Exports Fall 11% as Ferrochrome Shipments Rebound 20%​
Read More
[SMM Chromium Flash] South Africa’s August Chrome Ore Exports Fall 11% as Ferrochrome Shipments Rebound 20%​
[SMM Chromium Flash] South Africa’s August Chrome Ore Exports Fall 11% as Ferrochrome Shipments Rebound 20%​
South Africa’s chrome ore exports fell 10.75% month-on-month to 2.36 million tonnes in August 2026, while high-carbon ferrochrome exports increased 20.0% to 117,180 tonnes, highlighting diverging trends in the country’s chromium trade. China remained the leading destination for chrome ore, receiving 1.67 million tonnes, or 70.8% of total shipments, despite a 6.09% monthly decline. Ferrochrome exports, meanwhile, were supported by stronger shipments to North America, with Canada receiving 26,373 tonnes and the United States 26,029 tonnes, together accounting for 44.7% of South Africa’s ferrochrome exports.​ The contrasting movements point to softer overseas demand for raw chrome ore alongside a recovery in ferrochrome shipments, particularly to North America. However, the monthly rebound in ferrochrome exports does not yet establish a sustained recovery in domestic smelting, while China’s dominant share of ore exports leaves South African shipments exposed to changes in Chinese purchasing activity.
Oct 16, 2026 22:13 (GMT+8)
[SMM Chromium Week Review] Export Flows Rebound as China's Port Stocks Rise and African Prices Diverge
Oct 16, 2026 21:43 (GMT+8)
[SMM Chromium Week Review] Export Flows Rebound as China's Port Stocks Rise and African Prices Diverge
Read More
[SMM Chromium Week Review] Export Flows Rebound as China's Port Stocks Rise and African Prices Diverge
[SMM Chromium Week Review] Export Flows Rebound as China's Port Stocks Rise and African Prices Diverge
Published: Oct 16, 2026.
Oct 16, 2026 21:43 (GMT+8)