Intel Corporation (INTC) puts Arizona chip manufacturing facility on hold

Posted Jan 15, 2014

Intel Corporation (NASDAQ:INTC) has decided to postpone the opening of a new chip manufacturing facility in Chandler, Arizona. This facility is now available for unspecified future technology. In February of 2011, Intel said that they were planning on investing $5 billion in the Fab 42 facility in Arizona, which was expected to be completely built last year.

The facility was supposed to begin operations on a process that would have enabled Intel to build transistors with a minimum feature size of around 14 nanometers. The facility was announced by former Intel CEO and president Paul Otellini when President Barack Obama was visiting an Intel facility in Hillboro, Oregon.

President Obama highlighted that facility as an example of manufacturing potential in the U.S. The building of the facility was completed on schedule. Intel will deploy 14-nanometer technology in Arizona, but it will be done in an existing fab space instead of the new facility to improve capital equipment efficiency and leave that new space available for future technology.

?By running both 14 and 22 nm processes at the same time we get better utilization of our equipment,? stated Intel spokesman Chuck Mulloy.

Intel’s delayed opening of the facility comes at a time where there is a decline in the PC industry. Last year, PC shipments worldwide declined by 10% compared to 2012.