Intel Wants to Revive US Chipmaking—but It Has to Catch Up First

Intel announced on Tuesday that it plans to spend $20 billion to build new chipmaking factories. “It's good news for the United States that Intel is doubling down on its manufacturing business,” says Saif Khan, a research fellow at Georgetown University’s Center for Security and Emerging Technology. Intel​’s CEO, Pat Gelsinger, said on Tuesday that the company would spend ​$20 billion to build new chipmaking factories in Arizona, bolster its unit making chips for other firms, and collaborate with IBM on research into new chip technology. “It's a pretty deep hole for Intel,” says Linley Gwennap, president of the Linley Group, a chip industry analyst firm. And it's not just about throwing money at the problem.” Linley Gwennap, president, The Linley Group “I think it should help Intel do a better job of innovating in the next-generation technology,” he says.