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Intel Corp. announced Wednesday it opened a new fab in Rio Rancho, New Mexico, to handle the manufacturing of advanced semiconductor packaging technologies, in what the tech giant says is the company's first high-volume semiconductor operations site.
The new fab, called Fab 9, is part of Intel's $3.5 billion investment into updating its 218-acre Rio Rancho campus that was first announced in May 2021, according to a Wednesday news release from the Santa Clara, California-based company that is also one of Arizona's largest employers.
Fab 9 joins Intel's existing operational fab, or fabrication facility, in Rio Rancho, called Fab 11x. Fab 9, in particular, is designed to fabricate more advanced semiconductor packaging technologies that include Foveros, a type of 3D packaging tech that allows processors to be built with tiles stacked vertically, instead of side-by-side.
"This cutting-edge technology sets Intel apart and gives our customers real advantages in performance, form factor, and flexibility in design applications, all within a resilient supply chain," Keyvan Esfarjani, Intel's executive vice president and chief global operations officer, said in a statement.
Foveros also allows Intel and foundry customers to "mix and match" compute tiles, which can optimize cost and power efficiency, per the release. Intel expects to manufacture Foveros and embedded multi-dye interconnect bridge — another type of advanced packaging technology — in Rio Rancho at high volume.
Fab 9 and Fab 11x, taken together, is Intel's first co-located high-volume advanced packaging site. That co-location allows an end-to-end manufacturing process that, in turn, creates a more efficient supply chain, Intel's release notes.
Intel hosted two hiring events last year in preparation for Fab 9's opening. The new fab is expected to generate thousands of jobs in New Mexico; the company employs over 2,100 people in the state, according to a 2023 economic impact report.
"This investment by Intel underscores New Mexico's continued dedication to bring manufacturing back home to America," Gov. Michelle Lujan Grisham said in a statement. "Intel continues to play a key role in the state's technology landscape and strengthen our workforce, supporting thousands of New Mexico families."
The U.S. CHIPS and Science Act, passed in August 2022, has spurred semiconductor investment throughout the country. The act directed around $280 million in federal spending toward research and development, commercialization and workforce development over a 10-year period, according to an October 2022 McKinsey & Co. analysis.
Large-scale semiconductor projects by companies including Intel and Taiwan Semiconductor Manufacturing Company Ltd. have been announced in Arizona, Ohio and Oregon, totaling hundreds of billions in fab investment.
Intel's increase in manufacturing capacity is part of the company's IMD 2.0 strategy, which aims to meet what CEO Pat Gelsinger has called a "surging demand for advanced semiconductors."
"Intel's reinvestment in Rio Rancho signals a remarkable renaissance story for this campus," U.S. Sen. Martin Heinrich (D-N.M.) said in a statement. "By fighting to pass the CHIPS and Science Act, I was proud to play a role in spurring the semiconductor manufacturing boom that is steering billions of dollars of investment to New Mexico."
Intel's stock (NASDAQ: INTC) trended upward slightly on Tuesday, closing the day at $48.93 after opening Tuesday at $48.12. The stock has seen a general climb over the past six months after sitting around $35 in August 2023, per MarketWatch.
