Intel to invest $3.5B to expand manufacturing in New Mexico

The investment will increase Intel's manufacturing capacity of advanced semiconductor packaging technologies.

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Intel's Rio Rancho, New Mexico campus.

Intel on Monday announced it will spend $3.5 billion to expand its manufacturing capabilities in New Mexico. The investment will increase Intel's manufacturing capacity of advanced semiconductor packaging technologies.

Intel's Rio Rancho, New Mexico site currently develops and manufactures Intel Optane technology, embedded multi-die interconnect bridge, and Intel silicon photonics technology. 

The investment comes amid political pressure to step up domestic semiconductor manufacturing. Intel CEO Pat Gelsinger previously said the company would respond to the current semiconductor chip shortage with ramped up production -- either in Oregon, Arizona, New Mexico, Israel or Ireland. 

Gelsinger -- who became Intel's chief executive in February -- has committed the company "to a steady cadence of leadership products" using both its own and external manufacturing. In March, he announced that the company would invest $20 billion to build two factories in Arizona.

Intel has had a presence in New Mexico since 1980 and is th largest industrial employer in the state. Its new investment should create at least 700 high-tech jobs in the state, Intel said, as well as 1,000 construction jobs. It should support an additional 3,500 jobs in the state.