Lesser line: Intel has announced plans to spend $3.five billion to upgrade 1 of its chip manufacturing facilities in Rio Rancho, New Mexico. The thought is that the heavy investment volition help counter the ongoing global chip shortage, but it's going to take some time for the money to do its job.

The money will be used to equip operations there with the ability to manufacture "advanced semiconductor packaging technologies," including Foveros, a 3D packaging technology that allows Intel to stack logic chips vertically rather than side-past-side.

The multi-year investment will create a minimum of 700 high-tech jobs and i,000 structure jobs, and support another 3,500 jobs in the state. Since 1980, the chipmaker has invested roughly $16.iii billion to support its New Mexico operations, which currently employ more than 1,800 people.

Newly minted Intel CEO Pat Gelsinger dorsum in March said the chipmaker was doubling down on its manufacturing chapters with a $20 billion investment to build two new 7nm fabs in Arizona. Those fabs will utilize extreme ultraviolet lithography (EUV) in a rearchitected, simplified process flow, Intel said.

Rival TSMC said concluding month that it would be investing more than $100 billion over the next 3 years to heave its capacity.

Even with the huge influx of money, the global flake shortage isn't going to get resolved overnight. "I remember we accept a couple of years until we take hold of upwardly to this surging demand beyond every aspect of the business," Gelsinger told 60 Minutes in a contempo interview.

Planning for the expansion will begin immediately, with Intel expected to break basis later this yr.

Paradigm credit Intel Corporation