Intel Boosts Investment in Advanced Chip Packaging
April 7, 2026 at 09:00
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✦ AI Summary
- Intel has invested billions to revive its New Mexico fab
- The company aims to enhance its advanced chip packaging business
- Demand for custom chips driven by AI creates new growth opportunities
In Rio Rancho, New Mexico, Intel has revived its Fab 9 chip plant, once dormant since 2007, with significant investment, including $500 million from the US CHIPS Act. This facility, among others, is now essential to Intel's expanding advanced chip packaging sector, which combines multiple chiplets into a single custom chip.
Over the past six months, Intel has indicated that this segment of its Foundry chip-making arm is experiencing rapid growth. As demand for computing power surges due to artificial intelligence, Intel is positioning itself to compete directly with the industry leader, Taiwan Semiconductor Manufacturing Corporation, in meeting the needs of major tech companies looking to develop customized chips.
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