Intel announces $3.5 billion investment in 'chip-stacking'

The plans will create 700 new permanent jobs in New Mexico

Intel has given more details about its plans to revamp its manufacturing, in an effort to lower its reliance on Asian companies.

The firm has announced a $3.5 billion investment in its existing chip fab in Rio Rancho, New Mexico, to develop its 'Foveros' chip-stacking technology.

Most processors use a so-called monolithic design, where everything happens on a single piece of silicon, which simplifies data management, design and manufacturing. However, companies are starting to look at different approaches. AMD, for example, is experimenting with 'chiplets', where multiple pieces of silicon are connected to create a single processor. Each chiplet can be focused on an individual task, or be one of a repeated unit to scale out compute performance.

Intel is also pursuing the chiplet route with Foveros. Unlike AMD, Intel stacks the chiplets one on top of the other rather placing them physically next to each other, saving space in the X and Y dimensions (although is does have some tradeoff in thermal management). This is technologically difficult, but Intel expects the design - which it debuted in 2018 - to increase manufacturing flexibility.

The $3.5 billion investment will create 700 new permanent jobs and as many as 1,000 temporary construction jobs, Intel's manufacturing head Keyvan Esfarjani said at a press conference. Construction is expected to begin later this year.

The money for the New Mexico plant is in addition to the $20 billion already earmarked for two new fabs in Arizona - also part of Intel's attempt to move away from third-party manufacturing. Some of this investment cash comes from Intel's revamped plan to focus less on stock buybacks and more on R&D going forward.