Intel is investing a whopping $1 billion in chip manufacturing in a move that could transform the chip maker’s business and help accelerate the company’s growth.
The investment will help Intel meet a key demand for chips for the burgeoning mobile industry.
It also could help Intel drive down the cost of chips for enterprise use, which is one of Intel’s key areas of growth.
Chipmakers like Intel and Samsung have been aggressively acquiring chips for their own use, particularly in emerging markets where they have been able to make faster and more affordable chips.
Intel’s chip production has been plagued by supply disruptions in recent years, including supply shortages in Asia, China and Mexico.
That led to a drop in the company the past year and a half.
The latest round of chip production will likely have a much smaller impact, analysts say.
Intel expects to report second-quarter results this month.