Intel to invest $20 bil. to boost chip output

US chipmaker Intel says it's investing 20 billion dollars to boost output amid a global shortage of semiconductors.

The world's largest computer-chip manufacturer said on Tuesday it will build two factories at its production base in the US state of Arizona.

It will also enter the foundry business to handle the manufacturing of semiconductors designed by other firms.

Intel Chief Executive Pat Gelsinger said the company is "setting a course for a new era of innovation and product leadership." He took over the chipmaker's helm last month.

The decision comes as the US is aiming to strengthen its semiconductor industry.

Computer chips have been in short supply around the world, forcing automakers to cut back on production.

In a related development, a fire at a plant in Japan last week has forced major chipmaker Renesas Electronics to partially suspend production.

A panel of experts and representatives from manufacturers will hold their first meeting on Wednesday to discuss ways of enhancing Japan's supply chain.