Intel has announced it is investing $20 billion to build two new chip factories in Arizona.

Intel is in the process of trying to turn its business around, after several years of setbacks. The company has dealt with supply issues, quality control issues, security bugs and losing Apple, one of its biggest customers. The company is even outsourcing some of its chip production.

The company’s turnaround began with a new CEO. VMware’s Pat Gelsinger replaced Bob Swan, and began aggressively working to help the company regain its former glory.

As part of Intel’s latest initiative, Gelsinger announced plans 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. “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.”

The company’s plans will result in thousands of jobs, and make a significant contribution to the local economy.

This build-out represents an investment of approximately $20 billion, which is expected to create over 3,000 permanent high-tech, high-wage jobs; over 3,000 construction jobs; and approximately 15,000 local long-term jobs. Today, Arizona Gov. Doug Ducey and U.S. Secretary of Commerce Gina Raimondo participated with Intel executives in the announcement. Gelsinger commented: “We are excited to be partnering with the state of Arizona and the Biden administration on incentives that spur this type of domestic investment.” Intel expects to accelerate capital investments beyond Arizona, and Gelsinger said he plans to announce the next phase of capacity expansions in the U.S., Europe and other global locations within the year.

It remains to be seen if Intel can undo its recent setbacks, but today’s announcement is a step in the right direction.