Intel plans to invest $3.5 billion and hire more than 700 new workers to create a domestic hub for advanced semiconductor manufacturing at its fabrication facility in Sandoval County, New Mexico.

In what will be one of the largest capital investments in New Mexico, Intel plans to modernize facilities to accommodate its Foveros technology, a breakthrough innovation to meet increasing customer demand for stronger microprocessing performance.

According to company officials, Intel is expected to hire 1,000 construction workers starting this year and spend $550 million on construction and new infrastructure. Intel New Mexico employees' average total compensation, as of the end of 2020, was $145,000 per year including salary, benefits, and bonuses.

“A key differentiator for our IDM 2.0 strategy is our unquestioned leadership in advanced packaging, which allows us to mix and match compute tiles to deliver the best products. We’re seeing tremendous interest in these capabilities from the industry, especially following the introduction of our new Intel Foundry Services," Keyvan Esfarjani, Intel senior vice president and general manager of Manufacturing and Operations, said. "We are proud to have invested in New Mexico for more than 40 years and we see our Rio Rancho campus continuing to play a critical role in Intel’s global manufacturing network in our new era of IDM 2.0.”

The Rio Rancho investment solidified after Governor Lujan Grisham and Economic Development Cabinet Secretary Alicia J. Keyes asked state lawmakers in a special session to reform the Local Economic Development Act (LEDA) to allow for a portion of construction-related Gross Receipts Tax to be rebated back to companies for large, significant, job-creating projects.

In addition to the GRT, which is expected to total $14 million with both state and local sharing, the state has pledged $5 million from its regular LEDA fund, paid out after Intel meets specific economic development goals. Sandoval County, home to the Intel plant, is pledging an additional $500,000, with specific job goal requirements, and will serve as the fiscal agent for the project.

“Intel’s $3.5 billion investment in New Mexico will create 700 new jobs in the next three years and establish the Rio Rancho campus as the company's domestic hub for advanced semiconductor manufacturing,” Governor Michelle Lujan Grisham said. “With this exciting development, we are already seeing the benefits of this year's legislation expanding LEDA, generating high-quality and high-paying jobs for New Mexicans. The state and Intel have a 40-year partnership, and today, with innovative economic development tools and global demand for this technology, we can celebrate a new generation of workers and job growth at Intel’s New Mexico manufacturing plant.”

Pending approval, the City of Rio Rancho has pledged $250,000 to the expansion from its job-creating LEDA fund and will consider action at an upcoming city council meeting.