Manufacturing News

Intel delays opening Arizona chip factory

Intel Corp. the world’s largest chipmaker, has delayed the opening of its new processor plant in Arizona because of a slump in sales.

Intel spokesman Chuck Mulloy told Bloomberg that the plant in Chandler, known as Fab 42, has been completed but the company has decided to first upgrade the other three factories on the site.

According to Reuters, despite the fact that the factory hasn’t yet opened, Intel has exceeded its target to employ more than 1,000 people since construction commenced in 2011. The company received state tax benefits for employing those people.

“The newer fab has not been equipped with the capital equipment. It has heating and air conditioning but the actual tools, the expensive stuff, are not in there,” Mulloy told Reuters.

He said that the delay won’t reduce the company’s total output.

Intels’s original plan was to install its most advanced manufacturing technology at the plant. It planned to manufacture 14 nanometer microchips with transistors so tiny that over 100 million of them could fit on the head of a pin.

Intel’s decision to delay the opening of the factory was first reported by the Arizona Republic on Tuesday.

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