Fab Builders Make Big Moves
According to industry watchers, the momentum shows no sign of slowing
Semiconductor manufacturing is experiencing a construction boom, driven by surging demand for microchips and government incentives. Two engineering and construction giants – Jacobs and Fluor – are making big moves to capitalize on this surge. Both firms have long histories in high-tech facilities and are ramping up their semiconductor portfolios worldwide. According to Construction Owners Club, Jacobs’ latest earnings show strong gains “driven largely by demand for data centers, semiconductor facilities and advanced manufacturing plants”. Fluor, meanwhile, is betting on new leadership and a global push in chips.
Jacobs: From Chemical Roots to Chip Fab Leader
Jacobs made a name in semiconductor fabrication projects by being a key design partner to Intel since the 1980s. Jacobs’ semiconductor pedigree isn’t limited to Intel. The company has served all of the world’s top 10 semiconductor manufacturers over the past 30 years. Its in-house expertise spans cleanroom design, advanced facility modeling, precision process systems and the full spectrum of mechanical/electrical systems needed for chip plants. Engineering News-Record recently ranked Jacobs as the #1 contractor in semiconductors, electronics and manufacturing globally. The firm’s “advanced manufacturing” division has a global integrated delivery platform for electronics projects, coordinating talent across the U.S., Europe and Asia. This allows Jacobs to rapidly deploy design teams from multiple offices to meet aggressive fab schedules – a capability that has been critical as chipmakers race to add capacity. Bob Pragada noted that Jacobs leverages technical staff from 15 offices worldwide.
Construction Owners Club reports that in the first quarter of 2026, Jacobs’ revenue jumped 12.3% year-over-year and profit swung to $125.5 million, largely thanks to “larger scope awards for data centers, life sciences and advanced manufacturing” facilities. CEO Bob Pragada highlighted that advanced manufacturing grew ~25% year-on-year and is driving a 12–18 month project backlog across the U.S., Middle East and Europe. One major win: TSMC selected Jacobs to design and deliver the industrial water infrastructure for its new $40 billion semiconductor campus in Phoenix, Arizona. Jacobs is handling the first phase of a cutting-edge water reclamation plant that will support TSMC’s massive fab, a critical project in the Arizona desert where water reuse is vital. Additionally, Jacobs were appointed as the engineering partner for a new outsourced semiconductor assembly and test (OSAT) facility in Gujarat, India, a joint venture involving Renesas Electronics. In this role, Jacobs provided engineering, procurement and construction services for an advanced chip packaging plant – a “world-class” facility aimed at strengthening India’s semiconductor supply chain. “Partnering with CG Semi on this pivotal project underscores our commitment to delivering innovative and sustainable solutions in the rapidly expanding semiconductor market in India,” said Jacobs CEO Bob Pragada in a press release.
Jacobs’ leadership is confident that trends like artificial intelligence and 5G will keep fueling new chip plants – and Jacobs is investing accordingly. The company has doubled its in-house AI development teams to embed digital tools in project delivery, which helps win complex fab contracts. Executives say these digital capabilities help Jacobs take on more integrated scope – such as installing specialized equipment and managing utilities – in hyperscale data centers and chip fabs. All told, Jacobs is emerging as a one-stop partner for chipmakers, from fab design and engineering to construction management and commissioning. With governments pouring billions into new fabs (via initiatives like the US CHIPS Act and EU Chips Act), Jacobs’ global experience and deep bench in semiconductors give it a leading edge.
Fluor: New Focus and Talent for a Semiconductor Blitz
Fluor Corporation, a century-old engineering firm famed for oil, gas and infrastructure mega-projects, is now aggressively expanding in semiconductors. Fluor’s history in microelectronics actually dates back decades – as far back as 1969, when it built a semiconductor device facility for RCA in Belgium, and 1982, when Fluor designed and constructed a 264,000 sq. ft. microelectronics plant for General Electric that met production goals just 18 months after design began. Throughout the 1990s and 2000s, Fluor executed various high-tech manufacturing projects. One standout was SilTerra’s wafer fab in Malaysia, for which Fluor provided engineering, procurement and construction management. That cutting-edge fab – producing 200 mm wafers – won Semiconductor International’s “Top Fab” award in 2002, underscoring Fluor’s ability to deliver world-class chip facilities. Fluor also completed multi-phase expansions of Analog Devices’ semiconductor assembly and test campus in the Philippines, adding cleanrooms and production capacity for advanced IC packaging. These projects established Fluor’s credentials in the semiconductor and electronics arena, even as the company was better known for energy and industrial jobs.
In recent years, sensing the market’s shift, Fluor has reorganized to target high-tech manufacturing. The company created an Advanced Technologies & Life Sciences (ATLS) business line to focus on semiconductors, data centers, batteries and pharmaceuticals. According to Fluor, it works with several top-tier clients in these sectors and had active semiconductor projects across Africa, Asia, Europe and North America as of 2022. Fluor’s internal reports revealed it won “nearly a dozen new semiconductor projects in 2021” alone, and anticipated continued growth into 2022 and beyond. Many of these are likely smaller-scale engagements – for example, tool installation contracts, fab infrastructure upgrades, and module fabrication – which play to Fluor’s strengths in construction management and modular design. Fluor has been leveraging its experience in ultra-clean life science facilities and its modular fabrication capabilities (borrowed from its energy projects) to improve speed and quality in chip fab construction. By assembling portions of facilities off-site and focusing on high-skilled “tool hook-up” work, Fluor aims to meet chipmakers’ aggressive timelines while managing risk.
Acknowledging that semiconductor projects require specialized expertise, Fluor recently made high-profile hires to bolster its team. Construction Kenya reported that Fluor “hired former Bechtel executives” to spearhead a semiconductor blitz in its ATLS unit. In January 2026, Fluor announced John Palmer – a veteran who led large tech projects globally – as its new Senior Vice President of Advanced Technologies, and Denis Bacon (with 25+ years in semiconductor project delivery) as Vice President of Semiconductors. “John Palmer is a recognized industry leader… His role will be to grow our data center, advanced manufacturing and semiconductor business in strategic markets around the world,” said Mark Funk, president of Fluor’s ATLS division. Bacon, reporting to Palmer, is charged with strengthening Fluor’s semiconductor business and aligning project delivery with customer needs. These two leaders hail from a competitor known for mega-fab construction (Bechtel), signaling Fluor’s seriousness about capturing more semiconductor work. The appointments “reinforce [Fluor’s] position as a global leader in advanced technologies,” the company noted, and position Fluor to deliver capital-efficient solutions for leading chip clients.
Fluor’s CEO David Constable is bullish on the sector’s prospects. “We continue to see strong investments in the semiconductor space where the outlook is supported by the CHIPS Act… from smaller tool install opportunities all the way up to large fabrication facilities, there’s over $5 billion in potential prospects over the next 12 months,” Constable said during a mid-2024 earnings call. In the second quarter of 2024, Fluor’s backlog of work jumped 26% year-on-year to $32.3 billion, thanks in part to new awards in manufacturing and electronics. While Fluor hasn’t publicly announced lead contracts for the giant new chip fabs in the U.S. (many of which went to competitors or local partners), it is securing plenty of related work. For example, Fluor has master service agreements with major tech firms for data center construction – a complementary market that often overlaps with semiconductor clients. Fluor’s strategy is to pursue select high-margin opportunities in the chip ecosystem where it can control execution and avoid excessive risk. This disciplined approach means focusing on projects like fab support facilities, chip assembly/test plants, and infrastructure for chipmakers. Fluor’s past projects include not only wafer fabs but also silicon wafer manufacturing facilities in Korea and polysilicon (raw material) plants in places like Norway and China. Such breadth positions Fluor to build out pieces of the semiconductor supply chain beyond just front-end fabs.
Moving forward, Fluor is aligning its resources to capture this wave. The firm notes natural synergies with its government contracting arm (e.g. handling federally funded fab projects under CHIPS Act grants) and even its nuclear small modular reactor (SMR) venture, NuScale, which could one day power energy-hungry chip fabs. And just as Jacobs is infusing digital tools, Fluor is embracing advanced project controls and modular construction techniques to meet fast-track schedules. By 2026, analysts observed that Fluor’s revenue mix was shifting: “increasing exposure to new drivers in advanced facilities — life sciences, semiconductors, data centers — is core to our positive thesis,” noted one Baird analyst. In other words, Fluor’s transformation into a go-to builder for high-tech plants is well underway.
Conclusion
In the global race to build semiconductor capacity – from American chip fabs and Asian assembly lines to European material plants – Jacobs and Fluor have emerged as critical players. Jacobs brings a long legacy of fab design-build expertise, deep relationships with chipmakers like Intel, and a strong pipeline of projects fueled by the AI and digital boom. Fluor is leveraging its project management muscle and new talent to capture a larger share of the semiconductor construction market, positioning itself in strategic niches and global markets. Both companies are truly “making big moves”: Jacobs is scaling up through innovation and relentless execution on fab megaprojects, while Fluor is pivoting with bold hires and a focus on advanced tech markets. As chip manufacturers invest hundreds of billions worldwide, these two fab builders are set to keep the construction cranes swinging – and, by all accounts, they’re just getting started.
According to industry watchers, the momentum shows no sign of slowing: chip demand, government subsidies, and technology trends like AI are creating a foundational market for construction firms rather than a fleeting niche. For Jacobs and Fluor, the challenge will be balancing rapid growth with execution excellence. But with their global experience and newly fortified teams, both are well equipped to “fab” the future of semiconductor manufacturing infrastructure.
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