RIO RANCHO, N.M. (KRQE) – Intel has announced an expansion of the company’s development and manufacturing operations in Rio Rancho on Monday, May 3. Intel CEO Pat Gelsinger was interviewed on “60 Minutes” discussing the announcement of a $3.5 billion upgrade to the New Mexico facility in addition to two new microchip fabrication plants in Arizona that will cost $20 billion.

“We’re having a $3.5 billion modernization of that factory there. It’s one of our older facilities but we’ve also come up with some cool innovations that are called 3D packaging and what this is, is that we don’t have just one chip that we package and deliver but we stack chips on top of each other and we’re gonna manufacture them at that facility,” said Gelsinger. “So a major modernization, 700 new jobs that we just announced there and in addition to the two fabs that we announced here, we’re announcing New Mexico.”

According to a press release from the Economic Development Department, the company’s investment was set after Gov. Lujan Grisham and Economic Development Cabinet Secretary Alicia Keyes asked New Mexico lawmakers in a special session to reform the Local Economic Development Act to allow for a portion of construction-related Gross Receipts Tax to be rebated back to companies for large projects that create jobs. The governor signed the measure into law on April 7, 2021.

Intel is expected to hire 1,000 construction workers this year an spend $550 million on new infrastructure and construction. EDD reports that Intel New Mexico’s employees’ average total compensation as of the end of 2020 was $145,000 per year which includes salary, benefits, and bonuses.

The biggest American microchip maker, Intel has its most advanced fabrication plant (fab) located outside Phoenix, Arizona. Intel reports that New Mexico has been a crucial part of its innovation for 40 years with several technologies being developed and manufactured in the state. In a press release, the company states that it has invested $16.3 billion to support New Mexico manufacturing and employs over 1,800 individuals.

According to the EDD, over the last five years Intel has spend over $1 billion with state-based organizations and has an annual total economic impact in the state of about $1.2 billion based on 2019 data.