Intel opens massive factory in Rio Rancho

Intel Corp. on Wednesday opened a massive factory in Rio Rancho, where it will manufacture advanced semiconductor packaging technologies.

The company invested $3.5 billion to build the Fab 9 factory.

The site is expected to create 700 permanent jobs and support as many as 3,500 jobs across the state as Intel manufactures its new chip-packaging architecture called Foveros.

The design is based on stacking computing chips on top of each other to create a compact package for faster computation.

Opening the factory marks a turnaround of sorts for Intel. From 2013-2017, Intel’s Rio Rancho workforce declined from 3,300 employees to about 1,100 as the company made investments in other states and overseas.

Fab 9 is among several large U.S. manufacturing sites Intel has announced in recent years that will scale up domestic chip building.

The investment reflects efforts to “re-shore” chip production to decrease dependence on Asian counties, where most chips are now made. Issues associated with reliance on other countries for those products was highlighted by supply-chain problems during the COVID-19 pandemic.

The Rio Rancho factory will offer high-paying jobs. Entry-level workers are expected to make from $23.42 to $43.53 an hour, and more experienced and senior-level positions start at $49,000 to $91,000 per year. Intel held a hiring fair in July.

“Today, we celebrate the opening of Intel’s first high-volume semiconductor operations and the only U.S. factory producing the world’s most advanced packaging solutions at scale,” Keyvan Esfarjani, Intel’s executive vice president and chief global operations officer, said in a statement. “This cutting-edge technology sets Intel apart and gives our customers real advantages in performance … and flexibility in design applications, all within a resilient supply chain.”

Intel has had a presence in Rio Rancho since 1980.

The opening of the latest factory makes Rio Rancho the first operational site for mass production of the company’s 3D advanced packaging technology, according to Intel.

“This investment by Intel underscores New Mexico’s continued dedication to bring manufacturing back home to America,” Gov. Michelle Lujan Grisham said in a statement. “Intel continues to play a key role in the state’s technology landscape and strengthen our workforce, supporting thousands of New Mexico families.”