Feeds

Intel shutters BRAND NEW chip factory as PC market storm rages

The WORLD's not ready for our Fab 4(2)

Boost IT visibility and business value

Intel is going to leave a massive new multibillion-dollar chip factory empty in Arizona as the slump in the PC market continues.

Intel told local paper the Arizona Republic that the factory known as Fab 42 would remain closed for the foreseeable future, but it would be used at some point.

“It will be used for future technologies at a future date,” spokesman Chuck Mulloy said, without elaborating on what use Intel has in mind for the plant.

The chipmaker has already received around $3.3m in tax credits from the state for job creation for at the factory, which was supposed to bring in a thousand jobs. But Mulloy said those jobs had been created, with employees working elsewhere on the Ocotillo Campus instead of the new factory.

“It doesn’t matter which building they work in; we’ve already increased the workforce by more than 1,000 people at that work site,” he said.

Fab 42 was a massive project for Intel, built using the world's largest land-based crane and touted by US President Barack Obama as a beacon of domestic manufacturing when he visited the site two years ago.

But Intel is likely to have full capacity with its existing semi-conductor fabs in Arizona, Oregon, New Mexico, Ireland and Israel, as beancounters continue to spell out doom and gloom in the PC market, where Chipzilla makes most of its revenue. Gartner's latest figures showed a ten per cent drop in PC shipments in 2013. ®

The essential guide to IT transformation

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Docker kicks KVM's butt in IBM tests
Big Blue finds containers are speedy, but may not have much room to improve
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Gartner's Special Report: Should you believe the hype?
Enough hot air to carry a balloon to the Moon
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Dell The Man shrieks: 'We've got a Bitcoin order, we've got a Bitcoin order'
$50k of PowerEdge servers? That'll be 85 coins in digi-dosh
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.