Intel abandons chip factory plans
 

Fashion bag maker Chipzilla has delayed its planned opening a major chip factory touted by President Barack Obama as an example of US manufacturing potential.

"Fab 42" facility built in Chandler, Arizona, was supposed to cost $5 billion and start making Intel's most advanced chips.

According to Intel spokespinner Chuck Mulloy it will remain closed for the foreseeable future while other factories at the same site are upgraded.

"The new construction is going to be left vacant for now and it will be targeted at future technologies," Mulloy - who used to work for AMD - told the local press.

Despite not opening the new factory, or fab, Intel has exceeded a target to hire over 1,000 employees since construction started in 2011, Mulloy said. Intel received state tax benefits for hiring those people. Quite what they are doing is anyone's guess.

The news will be embarrassing to Obama, who made a stop at the factory's construction site, where he called for government incentives to attract manufacturing lost to Asia in recent years back to the United States.

http://news.techeye.net/chips/intel-...-factory-plans