Production increases

Intel today announced that it is jointly building a new factory in Italy with communications companies. Intel also said this week that it plans to be a contract manufacturer for Qualcomm.

Intel (INTC) plans to aggressively expand its manufacturing and bring in partners to create digital solutions for customers around the world.

New Intel CEO Patrick Gelsinger announced ambitious plans to invest $20 billion in new chip plants. Intel plans to open two new plants in Arizona and a plant in Europe.

Intel shares have risen 14.8% since the start of the year, outperforming the overall market. Intel said on Friday in its press release "Paving the way for smart factories" that it will partner with EXOR International, JMA Wireless and Telecom Italia to build an integrated smart factory in Verona, Italy.

New York-based JMA Wireless is the world's leading developer of hardware and software for building high-speed mobile wireless communications.

EXOR International of Italy is the leader in both hardware and software solutions and cloud-based HMI solutions.

Telecom Italia Mobile is Italy's largest provider of telecommunications services by revenue and subscribers.

The joint factory will include both production of Inte processors and serve as a development centre for the latest technology: "networking, cloud and peripheral computing technologies in a flexible and modular application environment".

Qualcomm CEO Cristiano Amon said: "I see many opportunities for the companies to collaborate, and Intel's contract manufacturing plan could be an advantage for Qualcomm, which uses third-party facilities to manufacture chips".

Intel is counting on significant government assistance to build new factories in Arizona, as a bill is currently in the US House of Representatives that would provide $52 billion in funding for the country's semiconductor industry.

Due to delays in production processes and strong competition from Asian manufacturers such as Taiwan Semiconductor Manufacturing (TSM) and Samsung Electronics Co, Intel has partially lost Apple (AAPL) and other major customers.