Intel plans to invest $3.5 billion and add at least 700 jobs to scale up manufacturing operations in Rio Rancho, according to spokeswoman Linda Qian.
The company will not build any new facilities as part of the project. Instead, it will update the inside of the plant to make way for manufacturing. Construction is expected begin later this year, although a date has not been set. The company is expected to spend $550 million on construction and infrastructure, according to the New Mexico Economic Development Department.
The project will support 1,000 construction jobs, Qian said, adding that Intel plans to start manufacturing by late 2022.
The official announcement can be viewed online.
As part of the project, the Santa Clara, California-based company plans to update the site for production of advanced packaging technologies. One of the technologies is called embedded multi-die interconnect bridge, small connectors for computer chips to enable more scalability. Another, called Foveros, is a type of semiconductor packaging technology where components are stacked. Qian said stacking allows for better performance and more efficient use of space.
"[Advanced packaging] allows us to mix and match compute tiles to deliver the best products. We’re seeing tremendous interest in these capabilities from the industry," said Keyvan Esfarjani, senior vice president and general manager of manufacturing and operations at Intel, in a statement.
The project will be backed by a $5 million Local Economic Development Act incentive package from the state, as well as $500,000 in LEDA money from Sandoval County and another $250,000 from the city of Rio Rancho, pending approval. The project is the first under newly-signed LEDA legislation, which allows for state and local gross receipts tax and compensating revenue from the construction phase of projects costing more than $350 million to be put into the LEDA fund to help businesses cover land, building and infrastructure costs.
“Intel’s investment in the state signals again that New Mexico has a skilled workforce and a strong business climate, with the financial and logistical advantages to help businesses manage essential supply chains," Economic Development Cabinet Secretary Alicia J. Keyes said in a statement.
Under the agreement with Intel, the first disbursement of the gross receipts taxes would occur after the company adds 250 new employees, according to Bruce Krasnow, a spokesman for the New Mexico Economic Development Department.
Intel is a large employer with more than 1,800 employees in Rio Rancho. Average annual total compensation for Intel New Mexico employees stood at more than $145,000 as of the end of 2020, according to the company, including salary, benefits and bonuses.
The company is also boosting operations in the Phoenix area, recently announcing plans for two new semiconductor factories in Chandler, Arizona. The $20 billion investment is expected to create 3,000 high-tech jobs, according to Intel. New Mexico serves as an "innovation hub" for the company, whereas Phoenix is its "U.S. manufacturing powerhouse," Qian previously told Business First.
In 2004, the Sandoval County Commission approved a $16 billion industrial revenue bond for Intel's Rio Rancho plant, which broke ground in 1980. Several technologies are currently being developed there.
Industry analysts previously speculated that the future of the Rio Rancho plant was grim following job losses. Intel's Rio Rancho facility reportedly employed as many as 3,200 in 2013.
Intel reported year-over-year revenue growth of 8% last year, according to the company's most recent annual report. The company is betting on an increase in chip demand that some think will continue past the pandemic, according to a March report from The Wall Street Journal.
This story will be updated as more information becomes available.
