Intel is trying to have additional fab space to respond more quickly to upticks in the market.
In December, the company stated that it was in the early planning phase for manufacturing site expansions in Oregon, Ireland and Israel, with multiyear construction activities expected to begin in 2019. Ann Kelleher, Intel senior vice president and general manager of Manufacturing and Operations explained: “With the biggest market opportunity in Intel’s history ahead of us, we will take the necessary steps to prepare our global manufacturing network for flexibility and responsiveness to changes in demand.”
Currently, Intel has made progress toward preparing its sites for future expansion.
In Oregon, Intel is now in the early planning phase to add additional manufacturing capacity at the Ronler Acres campus. A permit application was submitted to the city of Hillsboro and the company is engaging community stakeholders on its proposed expansion. Pending all permits, Intel expects construction in Oregon to begin later this year.
In Israel, Intel announced it will submit a business plan to the government of Israel for continued investment in the company’s Kiryat Gat manufacturing site. Intel did not disclose details of the project, including schedules, costs and technologies.
In Ireland, Intel submitted an application to Kildare County Council for an extension and revision to a planning permission, which was granted in October 2017. The permission granted in 2017 relates to development of manufacturing space and support buildings on the westside of the Leixlip campus.
Intel estimates that having additional fab space at the ready will help the company respond more quickly to upticks in the market and enables Intel to reduce our time to increased supply by up to roughly 60 percent.
Site expansion, and the related investment, is expected to entail multiyear construction activities that will be taken in stages. And of course, these stages are subject to change based on business, economic and other factors.