Intel breaks ground on $20 billion Arizona plants as U.S. chip factory race heats up

A handout photo shows construction equipment at the site of a future Intel Corp chip factory in Chandler, Arizona, U.S., September 23, 2021. Picture taken September 23, 2021. Courtesy of Intel Corp/Handout via REUTERS.

(Reuters) - Intel Corp on Friday broke ground on two new factories in Arizona as part of its turnaround plan to become a major manufacturer of chips for outside customers.

The $20 billion plants - dubbed Fab 52 and Fab 62 - will bring the total number of Intel factories at its campus in Chandler, Arizona, to six. They will house Intel's most advanced chipmaking technology and play a central role in the Santa Clara, California-based company's effort to regain its lead in making the smallest, fastest chips by 2025, after having fallen behind rival Taiwan Semiconductor Manufacturing Co Ltd.