Santa Clara chipmaker Intel to spend $20bn on US chip plants to deter Asian dominance

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Santa Clara chipmaker Intel to spend $20bn on US chip plants to deter Asian dominance

In what could be witnessed as the kickstart of a US battle against Asia’s dominance in global semiconductor industry, Silicon Valley chipmaking giant Intel Corp said on Wednesday that the California-based American multinational tech behemoth had been brewing off an option to fiercely expand its advanced semiconductor manufacturing capacity involving a jawdropping $20 billion in fresh investments in new US chip plants, pointing towards a vehement US encounter to dwarf global market shares of Taiwan’s TSMC (Taiwan’s Semiconductor Manufacturing Co Ltd) and S.

Korea’s Samsung Electronics Co Ltd. In point of fact, latest Intel Corp. move to muscle up its chip manufacturing capacity by constructing new US chip plants in the US state of Arizona comes over the heels of a sweeping shortage in global semiconductor industry, while a number of deep-pocket auto giants had reportedly curbed out their productions due to a staggering lack of available chips.

On top of that, the Santa Clara-based chipmaker’s push to pour as many as $20 billion in new US semiconductor plants would more likely to pivot a balance of power for the US and EU amid an across-the-board domination of Asian chipmakers in global semiconductor industry, suggested analysts.

Followed by the statement, speaking in an interview with a press agency, Intel Chief Gelsinger was quoted saying that the $20 billion in new investments would be capitalized on constructing two new chipmaking factories at the company’s existing campus in Chandler, Arizona, creating at least 3,000 permanent jobs.

Intel mulls $20 billion in new investments to build US chip plants

In tandem, since the strategy would unswervingly challenge Taiwan’s TSMC and S. Korea’s Samsung, two other companies which could manufacture advanced chips apart from Intel, shares’ prices of Intel Corp.

had space-dived 7.5 per cent following the announcement, while a riant full-year profit forecast published earlier in US trading hours had added to further optimism. Nonetheless, in a choppy trading session on Wednesday, Intel Corp.

shares’ prices closed out the day 2.27 per cent lower to $62.04 apiece, as major Intel investors likes of Third Point LLC kept urging the US chipmaker to spin off its expensive chipmaking operations. Meanwhile, according to Intel Corp’s full-year profit forecast for 2021, the Californian chipmaker was expecting $72 billion in revenues alongside a net income of $4.55 per share, below an analysts’ estimate of $4.77 per share, data from Refinitiv had unveiled.