Intel has started installing equipment at Fab 62, its new chip plant near Phoenix, which is due to open in early 2028. It has also put up the first major roof truss at its long-delayed Ohio site. The progress comes as demand for its data centre processors outpaces supply.
Intel has started installing equipment at Fab 62, its new chip factory near Phoenix, and is moving ahead at its long-delayed Ohio site, Bloomberg reported. Intel manufacturing chief Naga Chandrasekaran shared the update on the company’s website on Wednesday.
Fab 62 sits on Intel’s Ocotillo campus in Arizona, next to Fab 52, which is already running. It is due to start operating in early 2028, Intel said. Filling a plant with tools is the costliest step in getting it ready, as some machines cost hundreds of millions of dollars.
In New Albany, Ohio, workers have installed the first major roof truss for the site’s first factory. Ohio was meant to become the world’s largest chipmaking site, but work stalled. Last year, Intel pushed back its opening to between 2030 and 2031.
Chief executive Lip-Bu Tan, who took over in March 2025, has said projects like Ohio will only go ahead when there is enough work for them. The progress suggests Intel is becoming more confident about demand.
Orders for Intel’s data centre processors, used to run AI services, are growing faster than it can make them. It is also spending $5.7B to make more of its Xeon chips in Ireland. In July, Intel raised its spending plans for this year to more than $20B and said it expects to spend significantly more in 2027.
Intel also wants to make chips for other companies, but it has yet to announce many big customers for that business. Apple was reported in May to be in early talks to use Intel’s factories, and Intel has joined Elon Musk’s Terafab project as a manufacturing partner.
The US government, which holds a stake in Intel, has a lot riding on the plan. In August, Intel also proposed a $15B share sale to raise money. Still, Intel spends far less than rival TSMC, which analysts expect to spend about $60B this year, Bloomberg said.
Published
Back to top