Intel's Arizona Chip Plant Being Put on Hold
January 15, 2014 10:42 AM
It's upgrading other Chandler, Arizona facilities instead
Intel is putting a halt to the opening of its advanced chip factory in Arizona and will instead upgrade its other facilities in the same area.
According to a new report from
, Intel's new chip facility -- called "Fab 42" -- is being put on ice for the moment due to its lack of "capital equipment" needed for creating the cutting-edge chips.
Intel spokesman Chuck Mulloy said that the facility has been built and has the basics like heat and air conditioning, but still doesn't have the main, expensive manufacturing tools needed for the chips.
Fab 42, which is located in Chandler, Arizona and was expected to be a $5 billion project, was meant to be a facility for creating Intel's most advanced technology, like
14 nanometer microchips
with over 100 million transistors on the head of a pin.
report suggests that Intel's PC sales have decreased due to the emergence of mobile devices. This development has hit the tech company's wallet, making it difficult to complete the new Arizona plant. Global PC shipments fell 10 percent in 2013, according to Gartner, and Intel said it expects its revenue to be flat in 2014 compared to last year.
However, it looks like Intel will put some money into upgrades at its older facilities in Chandler, Arizona. Intel has traditionally made its 22 nanometer chips in these factories, but they're being upgraded to also make the 14 nanometer versions, as this is likely cheaper than outfitting an entirely new building with the necessary equipment.
In addition, Intel hired over 1,000 new employees for the new plant since its construction started in 2011, and "many" of these new hires will work in the older plants now.
Earlier this month, Intel CEO Brian Krzanich revealed some big plans regarding
Intel's move toward wearables
-- which will be powered by Quark chips -- and that it wants to power 40 million tablets sold this year alone.
In November 2013, it was announced that Intel created a
for internet-connected devices.
"We are going to continue to work with them to make sure they understand the reality of the Internet. A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis
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