Intel's new CEO Pat Gelsinger unveiled a plan to invest billions on new factories and creating a foundry business on Tuesday.

Intel will spend an initial $20 billion on two new plants in Arizona to support Intel’s attempt to break into the foundry business. Intel plans even more factories in the U.S., Europe and elsewhere.

Directors of Intel previously considered abandoning Intel’s in-house manufacturing entirely and some investors wanted the company to cut costs by outsourcing production, but Gelsinger pledges that the majority of the company’s chips will be manufactured in-house.