On September 24, Intel broke ground on two chip fabs in Arizona, USA, to strengthen its competitiveness in the global foundry industry.

The new factories will be named Fab 52 and Fab 62 and will add to Intel’s existing facilities in its Ocotillo campus in Chandler, Arizona, which will house a total of 6 fabs.

Intel CEO Pat Gelsinger said the company will spend 20 billion US dollars to build the two fabs.

The two new factories will not only be used to produce Intel products, but will also provide foundry services for external customers, and they are expected to be fully operational in 2024. The two new factories will directly compete with TSMC, which started building a $12 billion fab in Arizona in June.

“Semiconductors are a hot topic these days and we face a global shortage that is causing chips to halt and slow the production of many other areas of the economy,” Gelsinger said during the groundbreaking event. “We are doing our part, and today’s announcement shows that we are working hard to overcome the shortage.”