Intel invests 3.5 billion in US factory and warns of ‘year shortage’

Intel will invest $3.5 billion to increase the capacity of its chip factory in New Mexico. Details are not yet known, but according to the CEO of the company, the chip delivery problems have not been solved; they are expected to last for ‘several years’.

CEO Pat Gelsinger said in an interview with 60 Minutes that the company plans to invest $3.5 billion or $2.91 billion in its Rio Rancho plant in New Mexico. The company has scheduled a press conference later on Monday at which it will disclose more about the investment.

Few details are known at the moment, so it is not clear whether this concerns an increased production capacity or, for example, to make new chips with EUV. The company plans to do the latter in two new fabs in Arizona, for which the company allocated $ 20 billion in March. Intel says that it is currently mainly adapting processes to meet the demand from car manufacturers.

Gelsinger also says in the 60 Minutes interview that he expects the chip shortages to be likely for years to come. “It will take a few more years before we can keep up with rising demand in all sectors,” he says in the interview. Gelsinger recently said that the chip shortages would last until ‘certainly after 2022’.