Intel's Fab 42 plant, which took 10 years to build, is now fully operational, greatly alleviating the production capacity of 10nm chips

Intel announced that the Fab 42 plant, which began construction in 2011 and took 10 years with a total investment of US$7 billion, has been fully operational, which will greatly alleviate the current 10nm chip production capacity crisis. This plant is also the company's third plant using the latest process. The operation of this plant will greatly increase the shipment volume of Intel's latest products.

According to data, the Arizona plant started construction in 2011. The initial plan was to produce 450mm wafers using the 14nm process technology, and it was nearly completed as early as 2013. However, in 2014, Intel was not sure about the demand for 14nm chips.

Because according to the plan, Intel will switch to 10nm process in 2016. However, what Intel did not expect was that the 10nm process was repeatedly delayed, and the factory was never completed, which also caused the 14nm chips to be out of stock for quite a long time.

Previously, Intel had a 10nm factory in Israel and Oregon. With the commissioning of the 10nm factory in Arizona, Intel now has a total of three 10nm factories, and the production capacity of 10nm chips has increased by more than 50%. It is expected that the supply of the upcoming 11th generation Core Tiger Lake processor will be relatively sufficient, at least on the mobile side, there will no longer be a situation where 14nm and 10nm coexist.

According to information, Intel CEO Brian Krzanich met with US President Donald Trump on February 8, 2017, and subsequently announced the restart of the construction of Fab 42 in Arizona, USA. In fact, Intel announced the construction of this factory as early as 2011. At that time, it was expected to use this factory to help the growth of mobile device chip business. However, as Intel has stopped producing smartphone chips, Fab 42 may serve Intel's new chip development target after it is officially put into use in the future.

According to reports from technology website PC World and ABC Fox Montana, Intel first announced in February 2011 when former US President Barack Obama visited Intel's plant in Hillsboro, Oregon, western United States, that it would invest $5 billion to build Fab 42 in Chandler, Arizona to produce 14nm chips. At the time, it was announced that 4,000 jobs would be added.

As early as January 2012, Obama personally visited the site of Fab 42, praising it for being able to produce some of the fastest and most powerful computer chips on the planet, and praising Intel as a model for the reshoring of American manufacturing. He also said that the government should stop rewarding companies that provide American jobs overseas and instead reward companies like Intel that invest and create jobs in the United States. Fab 42 was largely completed in 2014.

However, good times did not last long. In 2014, Intel slammed the brakes on the construction of Fab 42 and reserved the original site as available space for future use of unspecified technology. In response, Intel spokesman William Moss said that Fab 42 began construction in 2011, but the completion and commissioning date of the plant will be postponed to ensure that when Intel anticipates sufficient demand in the future, Fab 42 can immediately meet production capacity needs after completion.

Therefore, the completion schedule of the plant was put on hold for more than two years until Krzanich announced on February 8, 2017 that he would increase investment to restart the construction project. Trump, like Obama, once again praised Intel's move to create jobs for the United States and was a good thing for Arizona. However, outside analysis shows that Intel also made a promise to Obama in 2012, but then put the plan on hold. This time, Intel made a promise to the new President Trump in person again. Whether there will be other variables in the construction project in the future remains to be seen.

It is worth noting that in 2011, Intel expected Fab 42 to be used as a mobile chip production plant after completion; but as Intel abandoned the mobile device market and turned its growth focus to the Internet of Things (IoT), servers, automobiles and other emerging chip markets, it is also worth observing whether Fab 42 will be invested in chip manufacturing in these emerging fields after completion.

Sean Spicer, the new White House press secretary, also said that Intel's plan to restart the construction of Fab 42 is the latest wave of actions under the wave of optimism about the US economy since Trump took office as US President.

Intel can now use its 10nm process technology to produce chips in three factories in Israel, Oregon and Arizona. This series of chips includes Intel's just-released 11th-generation Core Tiger Lake processors.

Foreign media believe that the addition of Fab 42 will greatly improve Intel's ability to supply 10nm processors. It can be expected that the supply of the 11th generation Core Tiger Lake will be more sufficient than the 10th generation Core Ice Lake.