Intel to Invest $7 Billion in U.S. Manufacturing Facilities

[malware]

Intel President and CEO Paul Otellini today announced the company would spend $7 billion over the next two years to build advanced manufacturing facilities in the United States. The investment funds deployment of Intel's industry-leading 32 nanometer (nm) manufacturing technology that will be used to build faster, smaller chips that consume less energy. The commitment represents Intel's largest-ever investment for a new manufacturing process.


"We're investing in America to keep Intel and our nation at the forefront of innovation," Otellini said. "These manufacturing facilities will produce the most advanced computing technology in the world. The capabilities of our 32nm factories are truly extraordinary, and the chips they produce will become the basic building blocks of the digital world, generating economic returns far beyond our industry."

Intel's investment will be made at existing manufacturing sites in Oregon, Arizona and New Mexico and will support approximately 7,000 high-wage, high-skill jobs at those locations -- part of a total Intel workforce of more than 45,000 in the U.S. Intel, while generating more than 75 percent of its sales overseas, carries out roughly 75 percent of its semiconductor manufacturing in the U.S. At the same time, about 75 percent of the company's R&D spending and capital investments are also made in the U.S.

The technology used in Intel's manufacturing process builds chip circuitry 32nm (32/billionth of a meter or about 1/millionth of an inch) across – incredibly small, atomic level structures.

The first Intel processors to be built using this technology are codenamed "Westmere" and will initially be used in desktop and mobile mainstream systems. Westmere combines Intel's latest high-performance micro-architecture ("Nehalem") with graphics capability integrated into the processor. As a result, computer manufacturers will be able to increase performance and simplify system manufacturing compared to current systems. Outstanding 32nm manufacturing and product health are enabling Intel to accelerate the Westmere production ramp beginning in 2009. Additional 32nm products will follow in 2010.

Otellini will discuss the importance of new technology and investing for the future at 9 a.m. EST today during a speech at the Economic Club of Washington, DC. In addition, Intel executives will be on-hand at an event beginning at 10 a.m. PST in San Francisco to provide the world's first public demonstration of a fully functional 32nm based device – the first Westmere processor.

Source: Intel

[kiriakost]

Originally Posted by malware

"We're investing in America to keep Intel and our nation at the forefront of innovation," Otellini said.

Thats good news , so the rest world will push AMD sales , as they are ,the only worldwide Friendly option ...

The job cuts that INTEL did all ready world wide , will cause more INTEL sales ... ??

The market is one , the nation is Earth , and lies and hope is just a toy , to boost moral.

[mdm-adph]

I find this odd... since when was it cheaper to produce things in the US?

[kiriakost]

Originally Posted by mdm-adph

I find this odd... since when was it cheaper to produce things in the US?

Thats true .... thats why i reacted about the " False hope prophesy " .

[TRIPTEX_CAN]

Originally Posted by mdm-adph

I find this odd... since when was it cheaper to produce things in the US?

I think its because there may be new incentives for creating jobs in the US.

[AddSub]

I find this odd... since when was it cheaper to produce things in the US?

Massive government subsidies is my guess. I wouldn't be surprised if the government was promising all sorts of things to Intel behind the closed doors. Like massive tax breaks to being with.

[shagg]

YES! the OBAMA dream is working. I knew Obama would save us and make INTEL create new jobs in the USA. YES, OBAMA mania is real people. I knew, I just knew, that this 800 billion spending plan would work. WHOO hoooo!

[mdm-adph]

Tax breaks and subsidies -- probably so. I just hope Intel decides to keep investing money in the rest of the world, too -- isolationism is part of what made the first worldwide Great Depression so bad back in the day.

[TRIPTEX_CAN]

Originally Posted by shagg

YES! the OBAMA dream is working. I knew Obama would save us and make INTEL create new jobs in the USA. YES, OBAMA mania is real people. I knew, I just knew, that this 800 billion spending plan would work. WHOO hoooo!

I'm not sure if this is sarcastic or not

[btarunr]

Good for the US. Re-industrialization of US is the quickest way to pump-in employment.

[TRIPTEX_CAN]

Originally Posted by btarunr

Good for the US. Re-industrialization of US is the quickest way to pump-in employment.

Exactly, if you dont play both sides of the import/export game eventually you will fail.

[Darkrealms]

Originally Posted by TRIPTEX_MTL

I'm not sure if this is sarcastic or not

Agreed, I'm hoping sarcastic

I'm sure there were huge government incentives (on federal and state levels). Great for those that get hired for both the building and eventual production!

[Nitro-Max]

This is great news for America its what the economy needs jobs jobs and more jobs

[newtekie1]

Finally, a company that is planning to actually manufacture the product in the US, and sell it to other countries instead of the reverse.

Originally Posted by kiriakost

Thats good news , so the rest world will push AMD sales , as they are ,the only worldwide Friendly option ...

The job cuts that INTEL did all ready world wide , will cause more INTEL sales ... ??

The market is one , the nation is Earth , and lies and hope is just a toy , to boost moral.

Yeah, because I'm sure all the people in the other countries are going to be so pissed that a US based company created their plant in the US.

I bet you didn't get nearly as pissed off and didn't bitch and moan nearly as hard when AMD opened their fab plant in Germany.

[kiriakost]

The high-tech jobs , needs qualified people , and very few ...

The latest fashion even at north east Europe , that labor are cheap ...
Are the "full automated" production lines .

God help as all , if our dream are to work for INTEL as glass cleaners .

[kiriakost]

Originally Posted by newtekie1

Yeah, because I'm sure all the people in the other countries are going to be so pissed that a US based company created their plant in the US.

I bet you didn't get nearly as pissed off and didn't bitch and moan nearly as hard when AMD opened their fab plant in Germany.

" bitch and moan " ??

Keep in mind, that success called the global market share .
By winning few points here , and loose few points there , does not make you a winner.

If i produce oranges , and i have to eat them all by my self , were is the good at it .

[thoughtdisorder]

Originally Posted by btarunr

Good for the US. Re-industrialization of US is the quickest way to pump-in employment.

Agreed! Besides probable tax incentives, there is extreme alarm about the growing number of counterfeit products being sold in the "grey" market. Many OEM's are slowly withdrawing from China and Taiwan and turning to other countries for their manufacturing needs to combat these counterfeit products making it to the consumer.

Intel, Cisco and others are quietly addressing this issue with urgency due to certain governments applying pressure.

Btw, there is an aggressive time line for these changes to be made.

Some info:

http://www.builderau.com.au/news/soa...9288994,00.htm

http://www.npr.org/templates/story/s...toryId=5693207

[Polaris573]

Originally Posted by mdm-adph

I find this odd... since when was it cheaper to produce things in the US?

In my opinion high-tech and high quality manufacturing has to be in first-world nations. So you're choices are limited to U.S., Canada, Europe, Russia, and a handful of Asian Nations. Baxter International, a local medical supplies manufacturing company I'm familiar with has factories in Mexico. Much of the products produced there are rejected by quality control and many materials/equipment "go missing". This might be tolerable for some manufacturing, but for Intel to have large quantities of chips rejected and equipment "lost" would be intolerable.

So with most of their research/manufacturing base in the U.S. and their choices limited to U.S., Europe and Asia they might as well consolidate their manufacturing here.

[newtekie1]

Originally Posted by kiriakost

" bitch and moan " ??

Keep in mind, that success called the global market share .
By winning few points here , and loose few points there , does not make you a winner.

If i produce oranges , and i have to eat them all by my self , were is the good at it .

Yes, and this will likely not affect their global market share at all.

You whining about it isn't going to stop anyone from buying their products.

Them openning a plant in the US intead of another one in Taiwan is certainly not going to matter to anyone.

And certainly a US based company trying to help the US economy isn't a bad thing at all. Why should they help another country's economy before helping their own?

[BrooksyX]

This makes no since at all to me. Intel just cut tons of jobs nation wide, nearly 1,00 of which were in my local community. How do they have 7 billion to invest in new technologies.

[newtekie1]

NVM, I found it. Turns out about 1,000 employee's were layed off a few weeks ago. Nationwide about 6,000 employees stand to lose their jobs, but most are transferring to the new fabs.

[BrooksyX]

Oops didn't mean to put 10,000 locally. More like 1000. The rumor is worldwide for 10,000 cuts. But intel has already started cutting people from it work force in the Portland/Corvallis Oregon offices. I know people personally who have recently lost there jobs.

[kiriakost]

Originally Posted by newtekie1

And certainly a US based company trying to help the US economy isn't a bad thing at all. Why should they help another country's economy before helping their own?

Helping .... do you believe that ?? ...
do you know how "environment friendly" are those factories ?

There is no gain on the table , just false hope.

[BrooksyX]

Originally Posted by kiriakost

Helping .... do you believe that ?? ...
do you know how "environment friendly" are those factories ?

There is no gain on the table , just false hope.

Wether the fact that its green or not has no say if it will help the US economy. Whats killing the economy here is that people are loosing their jobs like crazy with no new jobs showing up anytime soon. So any job thats available in the US is a good job and will help the economy here.

[kiriakost]

I have no interest of who will get what .... as a simple observer i just stated my opinion.

The last six months , i have daily as food "false hopes" , its time US to have their .