updated 09:35 pm EST, Tue January 14, 2014
Funds earmarked for new plant will be used to modernize older facilities
Intel has postponed indefinitely the official opening of a near-completed chip factory in Arizona as a result of slowing computer sales. The Fab 42 facility in Chandler, AZ will not open, with Intel shunting money earmarked for the facility to upgrade other factories at the same location. The new factory was an Obama re-election campaign stop in 2012, where he touted the facility as a prime way to reclaim manufacturing lost to China and other Asian countries.
Intel spokesman Chuck Mulloy told Reuters that the new construction "is going to be left vacant for now, and it will be targeted at future technologies."
"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 said. "It all boils down to better capital utilization." The current facilities at the Chandler facility are optimized for the 22nm process. Conversion is underway for the plants to use the new 14nm fabrication methods.