Intel rose 6% before the market,Intel doubles down on chip manufacturing with $20 billion investment

On March 24, Intel surged 6% before the market.Intel doubles down on chip manufacturing with $20 billion investment。

Intel's new CEO Pat Gelsinger is doubling down on chip manufacturing.

The company — which has been pressured to outsource more of its chipmaking — announced Tuesday during a business update its plan to invest $20 billion to build two new factories in Arizona.

“We are setting a course for a new era of innovation and product leadership at Intel,”said Gelsinger in a statement. “Intel is the only company with the depth and breadth of software, silicon and platforms, packaging, and process with at-scale manufacturing customers can depend on for their next-generation innovations. IDM 2.0 is an elegant strategy that only Intel can deliver – and it’s a winning formula. We will use it to design the best products and manufacture them in the best way possible for every category we compete in.”

Gelsinger said during a conference call that he views Intel's internal chipmaking as a key strategic advantage. The comments on production echo those made by Gelsinger to investors soon after he started at Intel as CEO in late February.

To bring home the point, Gelsinger was joined on the digital stage byMicrosoft CEO Satya NadellaandIBM CEO ArvindKrishna. Both expressed confidence in Gelsinger's plan to keep chipmaking in house.