Intel Advances Arizona and Ohio Fab Expansions as TSMC Capacity Tightens

Intel (INTC) has begun installing production equipment at its Fab 62 plant near Phoenix, with operations targeted for 2028, the company's foundry chief Naga Chandrasekaran said Wednesday. The adjacent Fab 52 is already running and began mass production of the advanced 18A process at the end of 2025, primarily for Intel's own processors. In Ohio, the first large roof truss has been installed at the New Albany site, though the first fab is now targeted for completion in 2030 and the second in 2031 — at least five years behind the original schedule announced in 2022. Equipment installation is the costliest phase of fab construction, with single tools priced in the hundreds of millions of dollars. CEO Lip-Bu Tan has taken a more cautious approach to expansion than predecessor Pat Gelsinger, requiring confirmed demand before proceeding. Intel raised its 2026 capital expenditure budget to about $20 billion in July and expects a significant increase in 2027, still well below TSMC's (TSM) estimated $60 billion. Intel has yet to secure a major external customer for 18A. Analysts suggest TSMC's tight advanced capacity could create an opening, with Nvidia (NVDA), AMD (AMD), Apple (AAPL) and Broadcom (AVGO) competing fiercely for allocation.