Intel to Accelerate Arizona Fab Build Out After Getting Large Customer Order

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Intel shares rose in late Thursday trading after CEO Pat Gelsinger said third-quarter financial results are running above the midpoint of the company’s guidance range. Intel previously forecast third-quarter revenue of between $12.9 billion and $13.9 billion.

Gelinger commented that A

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Investment conference.

Intel’s CEO said the company has received a “large customer advance” for the 18A production capacity, which the company will use to produce cutting-edge chips by rolling out 1.8 nanometer production lines.

As part of the advance, Intel said it is accelerating construction of its new chip manufacturing facility in Arizona. “In general, everything is coming together,” he said. “And this customer prepayment is a strong exclamation point for 18A and for increasing production capacity.”

Gelsinger did not say which customer has been prepaid for production capacity.

Intel has been making significant efforts to expand its chip manufacturing business on behalf of other hardware companies. The company is building all-new fabs in Arizona and Ohio as part of its strategy.

During the conference session, Gelsinger responded to the rapidly growing cost concerns

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GPUs may be crowding out the demand for Intel’s own processors for AI applications. Intel claims that it will be “more competitive for GPUs” and that the AI ​​trend will also “create opportunities” for Intel’s CPU chips.

Intel shares were up 1.8% on Thursday at $35.15.

Write to Eric J. Savitz at [email protected]