Intel announces a $19 to $20 billion plan for capital expenditure for 2021.

On Tuesday. Intel [INTC] announced its plans to commit to a record $19 billion to $20 billion in capital expenditures this year, or about 45% above the company’s average annual capital expenditures over the past five years. The company says, behind this multibillion-dollar revival plan is a growing view among tech executives that booming demand for computer chips will continue beyond the pandemic.

Intel, Taiwan-based Semiconductor Manufacturing Company, known to be the world’s leading contract chipmaker, in January pledged to spend up to $28 billion on plant investments this year. This plan was a record for that company and a 47% annual increase. 

On Tuesday, Intel Chief Executive Pat Gelsinger, said, “Everything is becoming more digital and we are saying Intel is stepping into that gap aggressively to help provide the capacity that’s needed.” He had announced his turnaround plan for the company. The pandemic had given a surge in the demand for the chips making the company witnessed increased sales. Gelsinger said the embrace of more digital tools fueling that demand, was only accelerated by the pandemic.

Microsoft Corp. CEO Satya Nadella, joining his Intel counterpart by video at the chipmaker’s strategy rollout, said that “we’re entering a completely new era as computing becomes embedded in our world.”