Benzinga | May 4, 2021 08:55AM EDT

Intel Earmarks $3.5B For New Mexico Site Upgrade

* Intel Corp (NASDAQ: INTC) plans to spend $3.5 billion for the up-gradation of a chip manufacturing plant in Rio Rancho, New Mexico, CNET reports.

* The spending, along with $20 billion set aside for two new facilities in Arizona marked Intel's U.S. chip manufacturing drive to regain manufacturing technology leadership position.

* Intel CEO Pat Gelsinger has been requesting chip building subsidies from U.S. and Europe, Bloomberg reports.

* Gelsinger emphasized the concentration of manufacturing of advanced chips in Asia as being a security and economic risk.

* Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM) usurped Intel's dominant chip building position lately.

* Gelsinger remains focused on investment in new chipmaking plants or fabs to recover its lost position. Intel also plans to initiate third-party chip manufacturing and outsource some of its production to other foundries.

* Price action: INTC shares traded lower by 0.50% at $57.24 on the last check Monday.