Senior vice president and general manager of Manufacturing and Operations at Intel Corporation, Dr. Ann B. Kelleher, said that the expansion plans are all part of Intel's transformation from a PC-centric company to a data-centric company.
"This year, we raised our capital expenditures forecast and put that money to work expanding our 14nm manufacturing capacity to increase supply. We also made good progress on the previously announced schedule for Fab 42 fit-out in Arizona, and we made the decision to locate development of a new generation of storage and memory technology at our manufacturing plant in New Mexico. Looking ahead, we are now in the early planning phase for manufacturing site expansions in Oregon, Ireland and Israel, with multi-year construction activities expected to begin in 2019", she said.
Having additional fab space at-the-ready will help Intel respond more quickly to upticks in the market and reduce time to increased supply by up to roughly 60 percent.
"In the weeks and months ahead, we will be working through discussions and permitting with local governments and communities. It is important to note that site expansion and the related investment will be taken in stages and are always subject to change based on business, economic and other factors", Dr Kelleher said.
In addition to expanding Intel's own manufacturing capability, it will continue its selective use of foundries for certain technologies where it makes sense for the business.
"The use of foundries has been an Intel practice for nearly two decades. As we invent more products for a broader set of customers, you can expect us to be strategic about the application of Intel's differentiated manufacturing capability and the selective use of foundries. Intel isn't just inventing technology's future, we're building it. We will continue applying our advantages as an integrated device manufacturer to deliver the world's best silicon. To do that, we will continue to ensure we have the necessary global manufacturing footprint and capabilities as our business expands."