Friday, February 10th 2017

On Intel and Their $7B White House Affair

By now, we've all seen, or at least heard, about Intel CEO's Brian Kraznich Fab 42 announcement (done from the Oval Office, no less). It was to be a joint press conference to announce a highly impactful investment on U.S. soil, which also turned into some welcome PR for Intel, and got the CEO some face time with the President.

It has to be said though, that hailing this as a Trump administration win is simply politics doing its best: spinning the truth for its own benefit. I say this because the original announcement for the construction of this Arizona fab was done way back in 2011, with then Intel CEO Paul Otellini breaking the news that they would spend $5 billion on the plant during the Obama Administration. Construction started that year, with overall expectation for its completion being somewhere around 2013. Cue the usual delays, and enter 2013's 10% decline of the PC market, and Intel did what any sensible company would do in the wake of lower expected volume of shipments (and respectively lower production needs) - they postponed the opening of the factory, indefinitely, instead choosing to improve manufacturing capability of its then already-operational fabs. So, the factory wasn't announced because of President Trump's policies and overall government acumen, nor is it probably going to be finished by the time his first term ends.
Krzanich didn't make this announcement because the "tax and regulatory policies" of the Trump administration are "advantageous". Kraznich did it in a show of force and open support for President Trump (as Kraznich has a past of doing), and if there's one thing we know of Intel (and every other major corporation focused on profit) is that everything happens for the bottom-line. The question of "why now" isn't answered with "because of President Trump's policies". It's answered by Krzanich's internal memo to Intel employees: because growing demand means Intel must increase production capacity. A sign of the times is the fact that the Arizona fab was originally projected to push Intel's 14 nm manufacturing capability, but has now been re-purposed as an accelerator towards Intel's 7 nm aspirations.

Although it has to be said, as President Trump himself would, that Arizona workers will be very happy: 10,000 jobs is a whole big number - full of zeroes. Arizona is second only to Nevada in overall population growth rate, and job creation is one of the most important economic growth factors. Though that's not the real number of workers: that's the best-case scenario. The real number of direct jobs to be created by this investment is around 3,000, with up to 10,000 jobs being created "in support" of the factory, as Kraznich himself put it (such as new businesses opening to support the infrastructure and the increased number of employed workers).

In fact, President Trump's administration hasn't even made a concrete, thought-out move towards tax breaks on American companies, though he did promise a 15% reduction in taxes while campaigning. So far, the only thing they've done on that camp is freezing new and outstanding regulations to fall into place, as well as adopting a purely "less is better" approach to tax regulation: for every new tax regulation, cut two previously existing ones".

Now personally, I find it to be extremely disconcerting that President Trump's administration has the most clearly-defined trend of donations having bought top spots in the Trump administration, in what can be called influence peddling, even avoiding such boresome proceedings as ethic reviews for conflicts of interest.

All in all, I just think these are way too many coincidences to be just that. It seems simply as just yet another pivot, another case of one hand washes the other in the cutthroat world of corporate interests and political favor, of chess played (and paid) with billions. Let's face the proverbial elephant in the oval office: Intel's announcement is a complete farce, being indicative of an unhealthy balance of powers between those that be at the White House and corporate interests.

I understand how negative all of this sounds. But every case must be considered as-is, and this one simply isn't. There are healthy, transparent, strengthening bonds that a government can have with the corporations that are the lifeblood of its economic development, which positively impact the every-man's life. Tax cuts may be one of them, by increasing the amount of leeway a company can have on its own internal investment, R&D, increased employment and better conditions for its workforce. Government subsidies, which propel promising startups which then grow on to provide new, competitive businesses and thus reinforce the economy - of which Intel has received at least $5.9 billion dollars itself, from tax rebates to federal grants, including almost $100 million in property tax immunities (while AMD itself has received only about $11 million). Another good example is how governments supported what were, at their infancy, extremely low-margin business (like the solar panel and renewable energies companies), eventually ushering us all into developments that will only improve the quality of life for us and our children.

There are ways of doing things; both President Trump and Kraznich may even know how to do them, and have certainly done some of them before.

But then, then there are ways of how not to do things.
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199 Comments on On Intel and Their $7B White House Affair

#26
Ghost
There it is. Leftist propaganda has reached TPU. RIP.
Posted on Reply
#28
Harry Palms
erixx, post: 3599658, member: 82798"
I saw this coming when your sister site posted the same.
First of all, why all these twisty stinky non-proven non-executed politics on TPU? Jumping on the daily hysteria bandwagon?
Why talk about a bunch of hair that tweets like farts that has not done anything yet?
I was thinking the same thing! I am glad you brought it up. Thank you! I come here to check out PC related news, not to hear libs whine.
Posted on Reply
#29
Harry Palms
Instead of hoping for the best to come out of such a meeting between two businessmen for the betterment of peoples lives, you write a story with a negative spin to it? The U.S. is a corporation and should be govern as such. This way, everyone gets a piece of the pie, from big to small. If you want socialism, move to the Scandinavias. Now, lets go back to good ole techie stuff :)
Posted on Reply
#30
Joss
I don't remember TPU writing an editorial when Obama bailed out banks to the tune of trillions of taxpayer money, only to hire to his administration some of the names responsible for the very bankruptcy.
This article is leftist propaganda, has no place in a tech site, it's shameful and biased and you should withdraw it with an apology.
Posted on Reply
#31
PowerPC
Please keep this site apolitical! I'm seriously considering not to go here anymore after such a blatant hit piece on the current president.

Why not write that Trump was the reason Intel decided to put the "indefinitely" cancelled project off ice? You could have still conveyed the message that Intel was planning this longer, although everybody knows planning and actually doing are two completely separate things.

Instead of viewing this just as optimistic news from Intel and Trump that the plant
in fact is going to be built, when it wasn't sure before... you put it in a bad light by prognosticating that it "probably won't be built in Trump's first term". You don't mention that these thing usually take a while to plan and build, and that they are now trying to work with a totally different administration and new laws...

This shouldn't be on TPU and should be taken down with an apology, if you don't want an exodus of many of your readers who voted for Trump, I have to assume you just see as "deplorable, sexist and racist" like someone who you most likely voted for, if you did.
Posted on Reply
#32
Raevenlord
News Editor
siluro818, post: 3599793, member: 142649"
Nothing is apolitical, even political passivity. This article has a point that needed to be made.
Hits table, inserts "Thank you" meme.

Ghost, post: 3599794, member: 87788"
There it is. Leftist propaganda has reached TPU. RIP.
Nor is it leftist, nor is it propaganda. It's about transparency, and not spinning the truth. Those values are universal.

Joss, post: 3599836, member: 152251"
I don't remember TPU writing an editorial when Obama bailed out banks to the tune of trillions of taxpayer money, only to hire to his administration some of the names responsible for the very bankruptcy.
This article is leftist propaganda, has no place in a tech site, it's shameful and biased and you should withdraw it with an apology.
I'm the one who wrote it, and it was my decision to write on this topic - that it never happened before doesn't mean it shouldn't have.

Though what you say is true that there wasn't a TPU article about the bailout, I wasn't here when that happened. Because I guarantee you, I would definitely have written something about that.

PowerPC, post: 3599852, member: 159951"
Please keep this site apolitical! I'm seriously considering not to go here anymore after such a blatant hit piece on the current president.

Why not write that Trump was the reason Intel decided to put the "indefinitely" cancelled project off ice? You could have still conveyed the message that Intel was planning this longer, although everybody knows planning and actually doing are two completely separate things.

Instead of viewing this just as optimistic news from Intel and Trump that the plant
in fact is going to be built, when it wasn't sure before... you put it in a bad light by prognosticating that it "probably won't be built in Trump's first term". You don't mention that these thing usually take a while to plan and build, and that they are now trying to work with a totally different administration and new laws...

This shouldn't be on TPU and should be taken down with an apology, if you don't want an exodus of many of your readers who voted for Trump, I have to assume you just see as "deplorable, sexist and racist" like someone who you most likely voted for, if you did.
Those things you mention are all in the piece. I even explain how it wasn't Trump who took the project off ice. It was an Intel decision, taking advantage of the timing to approach the administration.

I actually don't understand how some of the facts that I use to back up my opinion aren't even considered, and are just glossed over. Maybe they're not that convenient. But I stand by what I wrote, and always will.
Posted on Reply
#33
rtwjunkie
PC Gaming Enthusiast
Raevenlord, post: 3599788, member: 166527"
Yo be fair, it Is marked as editorial right under the title, in green :p
Just thought I would mention, nowhere do I see this as marked Editorial here, only on the TPU home page.
Posted on Reply
#34
Raevenlord
News Editor
rtwjunkie, post: 3599923, member: 56774"
Just thought I would mention, nowhere do I see this as marked Editorial here, only on the TPU home page.
Ahhh, I see the issue... I'll make sure to let the powers that be know about that. Thank you :)
Posted on Reply
#35
rtwjunkie
PC Gaming Enthusiast
Raevenlord, post: 3599925, member: 166527"
Ahhh, I see the issue... I'll make sure to let the powers that be know about that. Thank you :)
No problem! I'm not of an opinion either way...I am glad you maintained a fine line. The Editorial banner is great for people visiting the site from the outside, as a great many do. The complaints mostly come from, I believe, the heavy forum regulars, who frequently come straight to the forums while bypassing the main page. So then when your article is seen by them, it is listed differently in the News section.
Posted on Reply
#36
dalekdukesboy
Dude's in office 3 weeks we already have had this "story", and at least one poll that Wiz posted within days of election and far before he even was in office...sorry libs, this is "transparent" but not in the way Raevenlord claims, it's transparent it's a way to diss Trump and say Obama gets credit for this as well as to bring politics into TPU when we had 8 years of Obozo and I don't remember a single story that mentioned him whatsoever never mind polled us all about how his policies could hurt techville, before he even was sworn in.
Posted on Reply
#37
PowerPC
Raevenlord, post: 3599914, member: 166527"
Those things you mention are all in the piece. I even explain how it wasn't Trump who took the project off ice. It was an Intel decision, taking advantage of the timing to approach the administration.

I actually don't understand how some of the facts that I use to back up my opinion aren't even considered, and are just glossed over. Maybe they're not that convenient. But I stand by what I wrote, and always will.
Because what you are calling facts are just simply your interpretation of the facts, not facts. Although Intel didn't say they revived the project because of Trump, doesn't prove in any way they didn't do it because he won.

Even though the whole timing and public presentation of the announcement with Trump seems to scream otherwise, you still want to interpret it your way. Fine. But don't say it's a fact, and not just liberal scraping to pull anything remotely negative about Trump out of thin air.

As I said, what companies plan internally and what they actually do in the end are completely different things. If you don't know this, I assume you never worked at any real company in your life, on any big projects. Your investigation on the inner communications at Intel doesn't prove an ounce what they might have done or not done with or without Trump. It's simply your assumption of having all the facts when you don't, and your arrogance to still push a negative story without having those facts, which is more than just unethical. It's another journalist who thinks he's "fighting the power" by just slandering the president.

This is exactly why Trump won, by the way, because facts are 'too hard' nowadays for some journalists. Every intuition is called a fact now, no matter how delusional or how many actual facts it ignores.

I'm really taking a break from this place.
Posted on Reply
#38
dalekdukesboy
Joss, post: 3599836, member: 152251"
I don't remember TPU writing an editorial when Obama bailed out banks to the tune of trillions of taxpayer money, only to hire to his administration some of the names responsible for the very bankruptcy.
This article is leftist propaganda, has no place in a tech site, it's shameful and biased and you should withdraw it with an apology.
Amen.

PowerPC, post: 3599852, member: 159951"
Please keep this site apolitical! I'm seriously considering not to go here anymore after such a blatant hit piece on the current president.

Why not write that Trump was the reason Intel decided to put the "indefinitely" cancelled project off ice? You could have still conveyed the message that Intel was planning this longer, although everybody knows planning and actually doing are two completely separate things.

Instead of viewing this just as optimistic news from Intel and Trump that the plant
in fact is going to be built, when it wasn't sure before... you put it in a bad light by prognosticating that it "probably won't be built in Trump's first term". You don't mention that these thing usually take a while to plan and build, and that they are now trying to work with a totally different administration and new laws...

This shouldn't be on TPU and should be taken down with an apology, if you don't want an exodus of many of your readers who voted for Trump, I have to assume you just see as "deplorable, sexist and racist" like someone who you most likely voted for, if you did.
Raevenlord, post: 3599914, member: 166527"
Hits table, inserts "Thank you" meme.



Nor is it leftist, nor is it propaganda. It's about transparency, and not spinning the truth. Those values are universal.



I'm the one who wrote it, and it was my decision to write on this topic - that it never happened before doesn't mean it shouldn't have.

Though what you say is true that there wasn't a TPU article about the bailout, I wasn't here when that happened. Because I guarantee you, I would definitely have written something about that.



Those things you mention are all in the piece. I even explain how it wasn't Trump who took the project off ice. It was an Intel decision, taking advantage of the timing to approach the administration.

I actually don't understand how some of the facts that I use to back up my opinion aren't even considered, and are just glossed over. Maybe they're not that convenient. But I stand by what I wrote, and always will.
"Convenient"? Please. Next you will be quoting from "Inconvenient Truth" Algore's wonderful piece of fiction you probably idolized as a kid watching in school. We read the piece and we know all you wrote and Wiz was here along with many others when 8 years of Obama occurred and no one said boo, you claiming if you were here you'd have written something about bailout etc is laughable. The inconvenient "facts" here are you libs are having a cow about Trump whatever he does, and your piece is just evident of that.

Also throwing the word "universal" around is a red herring, it's a way to legitimize anything you say while insulating yourself from any criticism because it makes it sound like any scrutiny of your opinions are invalid.
Posted on Reply
#39
dalekdukesboy
PowerPC, post: 3599943, member: 159951"
Because what you are calling facts are just simply your interpretation of the facts, not facts. Although Intel didn't say they revived the project because of Trump, doesn't prove in any way they didn't do it because he won.

Even though the whole timing and public presentation of the announcement with Trump seems to scream otherwise, you still want to interpret it your way. Fine. But don't say it's a fact, and not just liberal scraping to pull anything remotely negative about Trump out of thin air.

As I said, what companies plan internally and what they actually do in the end are completely different things. If you don't know this, I assume you never worked at any real company in your life, on any big projects. Your investigation on the inner communications at Intel doesn't prove an ounce what they might have done or not done with or without Trump. It's simply your assumption of having all the facts when you don't, and your arrogance to still push a negative story without having those facts, which is more than just unethical. It's another journalist who thinks he's "fighting the power" by just slandering the president.

This is exactly why Trump won, by the way, because facts are 'too hard' nowadays for some journalists. Every intuition is called a fact now, no matter how delusional or how many actual facts it ignores.

I'm really taking a break from this place.
Amen again. It's a hit piece disguised as some lame attempt at journalism, wasn't even properly labeled as editorial as pointed out, and regardless of labelled or not you had 8 years of Obama and I heard not one peep here about him certainly not negative...you reap what you sow, and this is sowing salt to everyone who is either apolitical, here to avoid politics for a bit, and all those who are Trump supporters (gasp) or at least may be open minded enough even if they didn't vote for him to not want to see this hit piece you'd expect on CNN (fake news) or PMSNBC.
Posted on Reply
#40
Joss
dalekdukesboy, post: 3599942, member: 36860"
Dude's in office 3 weeks we already have had this "story", and at least one poll that Wiz posted within days of election and far before he even was in office
Yes, I remember now that "unbiased" poll.
To TPU writers: use your safe spaces to recharge your emotional batteries and leave this site unpolluted.
Otherwise, if Le Pen and/or Geert Wilders win what will you do ? Cut your veins and splash red all over these pages ? Get a grip.
Posted on Reply
#41
LFaWolf
Harry Palms, post: 3599830, member: 165189"
Instead of hoping for the best to come out of such a meeting between two businessmen for the betterment of peoples lives, you write a story with a negative spin to it? The U.S. is a corporation and should be govern as such. This way, everyone gets a piece of the pie, from big to small. If you want socialism, move to the Scandinavias. Now, lets go back to good ole techie stuff :)
Government is a corporation? That is a good one. How do you "fire" the poor people? And "layoff" the disables?
Posted on Reply
#42
Harry Palms
I'm leaving this site after this comment. I think this post really shows where TPU stands. Stupid libs.
Posted on Reply
#43
TRWOV
Raevenlord, post: 3599788, member: 166527"
Yo be fair, it Is marked as editorial right under the title, in green :p
Yeah, I noticed but it's only in the front page. Just a recommendation though.
Posted on Reply
#44
OneCool
Whoa!! Backs out slowly with no sudden moves....
Posted on Reply
#45
yotano211
Harry Palms, post: 3599972, member: 165189"
I'm leaving this site after this comment. I think this post really shows where TPU stands. Stupid libs.
Bye wont miss you
Posted on Reply
#46
rtwjunkie
PC Gaming Enthusiast
Harry Palms, post: 3599972, member: 165189"
I'm leaving this site after this comment. I think this post really shows where TPU stands. Stupid libs.
Your everyone getting a "piece of the pie" comment is very lib, so your "stupid libs" remark is actually funny. I don't care one way or the other your preferences, I just like to point out inconsistencies where people don't understand what they are saying. :)
Posted on Reply
#47
HaKN !
Wow so many rednecks here , didnt know :D
Posted on Reply
#48
Joss
HaKN !, post: 3600000, member: 159607"
Wow so many rednecks here
You forgot

racist
sexist
bigoted
misogynist
xenophobic
homophobic
islamophobic

it usually translates: white, male, middle class, heterosexual ..... wait, that's me :eek: I'm a criminal !!!
Posted on Reply
#49
Sasqui
Well written, call a spade a spade. I'll leave it at that.
Posted on Reply
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