Intel’s ‘Fab 42’ isn’t opening anytime soon

What was once touted by President Barack Obama as a centerpiece in the effort to “attract the next generation of good manufacturing jobs” is not scheduled to open in the near future.

Intel CEO at IM 2013 1024x681 Intel’s ‘Fab 42’ isn’t opening anytime soon

Intel’s factory in Chandler, Arizona, that was once destined to make the company’s 14 nanometer chips will continue to sit empty and will not be opened in the near future.

“Fab 42” was announced in late 2011 and was scheduled to come online at the end of 2013. The  facility, which Obama once visited on a campaign stop in 2012, was supposed to create 1,000 jobs. Reports Intel received about $3.3 million in state tax credits from the Arizona Commerce Authority for job creation at this facility.

Company spokesperson Chuck Mulloy is quoted as saying Intel plans to instead retool existing facilities to produce chips using the 14nm process. While Mulloy said the decision not to open the facility was only based on finding new efficiencies in existing facilities, it’s not hard to see that given the slumping demand for PCs Intel would have had too much fabrication facility on its hands.

But Mulloy says all is not lost for Chandler. Intel isn’t abandoning the building, and may consider opening it in the future. He is quoted as saying that while the facility is complete, Intel hasn’t installed the fabrication equipment in the building which would make up the bulk of the $5-billion cost.


Sam Reynolds is a Canadian technology journalist based in Taipei. His interest is the intersection between politics, business and technology.