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

#51
ssdpro
rtwjunkie, post: 3599998, member: 56774"
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. :)
+1
Posted on Reply
#52
evernessince
TRWOV, post: 3599705, member: 97693"
Just a recommendation, why not mark this as an "editorial" in the title or something?

I mean, I concur 100% with all your points but strictly speaking this isn't news, it's an opinion piece.
It's not an opinion that Intel has promised to create these same jobs before and never followed up, it's fact.
Posted on Reply
#53
my_name_is_earl
at "So far, the only thing they've done on that camp is freezing new and outstanding regulations to fall into place"

No, it is the stupid anti-Trump republican/Democrats who freezes trump from doing what he promise to the American people. They hold his immigration, then the ripoff Obamacare, then tax reduction. These liberal wanted more tax and regulation for our American companies while trying to satisfy foreign company. We have a bunch of sellout that take bribe from foreign company/country and Trump did made it illegal for any lobbylist to entered.
Posted on Reply
#54
evernessince
Harry Palms, post: 3599825, member: 165189"
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.
It's always funny when Trump supporters come to whine about people whining. Even though this article isn't "whining" about anything, it simply points out the fact that Intel has promised the exact same thing to Obama and failed. Oh, but sorry. I'm whining too much, I should use your alternate facts.
Posted on Reply
#55
TheMailMan78
Big Member
Knowing how this site works and even working for W1zz for a short period of time, I cannot believe BTA would allow a troll piece this blatant to be posted front page. As much as I respect such an epic troll, I would suggest you leave such specific politics out as an editor.

I've been here almost 10 years and I cannot remember TPU attacking Bush or Obama's policies or any of their BS PR stunts like Trumps "Intel Deal". This screams biased and TPU isn't a place where I want to read options on American politics. That's what GN is for. I want to know about AMDs next GPU. Not last weeks snowflake melt down.

Americans are more divided now since Obama than I have ever seen them in my 40 years on this earth. TPU needs to stay neutral and stick to what makes it great. Tech news, reviews and advice. Do editorials. Do interviews. Stay away from politics as a news editor or you WILL lose traffic over time. Not gain it. Any short gain you have now from trolling will dissipate if you effect people directly in a negative manner.

Just a tip from an older TPU member that's trolled with the best of em.
Posted on Reply
#56
LFaWolf
TheMailMan78, post: 3600118, member: 39776"
Knowing how this site works and even working for W1zz for a short period of time, I cannot believe BTA would allow a troll piece this blatant to be posted front page. As much as I respect such an epic troll, I would suggest you leave such specific politics out as an editor.

I've been here almost 10 years and I cannot remember TPU attacking Bush or Obama's policies or any of their BS PR stunts like Trumps "Intel Deal". This screams biased and TPU isn't a place where I want to read options on American politics. That's what GN is for. I want to know about AMDs next GPU. Not last weeks snowflake melt down.

Americans are more divided now since Obama than I have ever seen them in my 40 years on this earth. TPU needs to stay neutral and stick to what makes it great. Tech news, reviews and advice. Do editorials. Do interviews. Stay away from politics as a news editor or you WILL lose traffic over time. Not gain it. Any short gain you have now from trolling will dissipate if you effect people directly in a negative manner.

Just a tip from an older TPU member that's trolled with the best of em.
I agree with most of what you said, except the divide of America started not by Obama, but by fellows named Karl Rove/Dick Cheney and the smear campaigns. That began the downhill of American politics. Both sides just ratchet it up notches now.
Posted on Reply
#57
TheMailMan78
Big Member
LFaWolf, post: 3600120, member: 165861"
I agree with most of what you said, except the divide of America started not by Obama, but by fellows named Karl Rove/Dick Cheney and the smear campaigns. That began the downhill of American politics. Both sides just ratchet it up notches now.
I can give you a dozen other times its happened with the left before Bush. But, that's a "tit for tat" argument. I just don't see a point in that. Obama birthed the Tea Party movement. Liberals I don't think were ever as mad at Bush as conservatives were at Obama. This country is in a serious divide right now and I think its going to keep getting worse. Trump didn't win because people liked Obama or his policies. Trump won as a big FU to the Washington establishment. People are sick of Washington. So as bad as Trump seems, to at least 50% of the country he's better than the status quo.

Despite my avatar my personal opinion is he's to much of a populist. He is more of an FDR type than my liking. I'm way more of a Ron Paul kind of guy.
Posted on Reply
#58
InVasMani
LFaWolf, post: 3600120, member: 165861"
I agree with most of what you said, except the divide of America started not by Obama, but by fellows named Karl Rove/Dick Cheney and the smear campaigns. That began the downhill of American politics. Both sides just ratchet it up notches now.
Clinton's are the ones that called blacks super predators and were against gay marriage.
Posted on Reply
#59
InVasMani
It's a sad day indeed when even tech sites and video games are turning into political fodder for civil war between Republicans and Democrats and Christians and Jews against Muslims history repeats itself.
Posted on Reply
#60
swood15
I don't come to this site to read political hatchet jobs, I'm out. Getting my tech news from Guru3D from now on.
Posted on Reply
#61
diatribe
A lot of people responding here need to take a huge chill pill. This wasn't an article knocking on our glorious leader. It was a pretty important fact that an Intel exec deemed it necessary to make a white house appearance. It happened and it's interesting. The fact that other industries haven't been mentioned makes perfect sense due to this being a tech site. Everything is not "us" versus "them"; we are all on the same team here.
Posted on Reply
#62
Xzibit
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.
Then we look at some quotes from Krzanich

Bloomberg
"We’ve been working on this factory for several years. We’ve held off actually on doing this investment until now,” Krzanich said from the Oval Office. “It’s really in support of the tax and regulatory policies that we see the administration pushing forward that really make it advantageous to do manufacturing in the U.S.”
You cant help it wonder what this Editorial is aiming at.

LU
Krzanich explained how his company managed to thrive despite “regulatory and tax policies” that “disadvantaged us” during previous administrations, and now he looks forward to how much growth they can experience now that the economy is being unchained by those same regulations and taxes.
Posted on Reply
#63
rtwjunkie
PC Gaming Enthusiast
TheMailMan78, post: 3600118, member: 39776"
Knowing how this site works and even working for W1zz for a short period of time, I cannot believe BTA would allow a troll piece this blatant to be posted front page. As much as I respect such an epic troll, I would suggest you leave such specific politics out as an editor.

I've been here almost 10 years and I cannot remember TPU attacking Bush or Obama's policies or any of their BS PR stunts like Trumps "Intel Deal". This screams biased and TPU isn't a place where I want to read options on American politics. That's what GN is for. I want to know about AMDs next GPU. Not last weeks snowflake melt down.

Americans are more divided now since Obama than I have ever seen them in my 40 years on this earth. TPU needs to stay neutral and stick to what makes it great. Tech news, reviews and advice. Do editorials. Do interviews. Stay away from politics as a news editor or you WILL lose traffic over time. Not gain it. Any short gain you have now from trolling will dissipate if you effect people directly in a negative manner.

Just a tip from an older TPU member that's trolled with the best of em.
+1. :toast:
Posted on Reply
#64
InVasMani
Trump>Obama money spent by Intel on making America great again! Queue the liberal boycotts...#GrabYourWallet
Posted on Reply
#65
kn00tcn
it's hard to take anything some of you say seriously if all you do is constantly whine about "libtards", as if making a tiny point or question about how many years it takes to set up a business location, as if the entire world's problems come from ONE type of party brand, as if usa is the only thing that matters on the internet, as if you're some victim, no that's just bullying
Posted on Reply
#66
nuwb
I created an account just to +1 those asking for this site to be apolitical. The fact that TPU has (mostly) managed to avoid that is one of the reasons I've continued to visit as there have been many tech sites which have become politicized over the past couple years. It's toxic and divisive and not worth introducing even though the subject matter might be relevant or apply to everyone. There's a reason why bringing up politics and religion in a general audience is frowned upon.

If you really feel the need to publish political editorials, maybe do it on a personal site where people who want to hear those views can follow.
Posted on Reply
#67
LFaWolf
InVasMani, post: 3600130, member: 163695"
Guess you haven't been watching politics much we are in the eye of a total #### storm that I doubt ends peacefully.
Then you better stay in your bunker. Don't let them get'cha! We will let y'all know when it is safe to come out.
Posted on Reply
#68
Banned2017
@Raevenlord Nice spin and hearsay. Since 2011.... The CEO states the investment is due to the new regulations etc from the new administration. You can spin it any way you want to, but in the end we know the truth. You should file this article with Counterfeit News Network (CNN). Plus you are breaking your own forum rules.
Posted on Reply
#69
Scrizz
TheMailMan78, post: 3600118, member: 39776"
Just a tip from an older TPU member that's trolled with the best of em.
It is very sad. I never thought I'd see this BS reach TPU. :(
Posted on Reply
#70
rtwjunkie
PC Gaming Enthusiast
nuwb, post: 3600183, member: 169944"
I created an account just to +1 those asking for this site to be apolitical. The fact that TPU has (mostly) managed to avoid that is one of the reasons I've continued to visit as there have been many tech sites which have become politicized over the past couple years. It's toxic and divisive and not worth introducing even though the subject matter might be relevant or apply to everyone. There's a reason why bringing up politics and religion in a general audience is frowned upon.

If you really feel the need to publish political editorials, maybe do it on a personal site where people who want to hear those views can follow.
Thanks, and welcome to TPU!
Posted on Reply
#71
TheMailMan78
Big Member
Scrizz, post: 3600190, member: 42078"
It is very sad. I never thought I'd see this BS reach TPU. :(
Yeah man. It's bad when the old timers on here are shocked. I hope this was a one time thing.
Posted on Reply
#72
rtwjunkie
PC Gaming Enthusiast
TheMailMan78, post: 3600197, member: 39776"
Yeah man. It's bad when the old timers on here are shocked. I hope this was a one time thing.
You know it's not though. This wasn't the staff's first foray into political opinion.
Posted on Reply
#73
TheMailMan78
Big Member
rtwjunkie, post: 3600200, member: 56774"
You know it's not though. This wasn't the staff's first foray into political opinion.
I don't remember another time other than that W1zz poll. Got links?
Posted on Reply
#74
InVasMani
LFaWolf, post: 3600186, member: 165861"
Then you better stay in your bunker. Don't let them get'cha! We will let y'all know when it is safe to come out.
I'll be just fine I assure you of that.

liberals in 10 years robots have feelings too...
Posted on Reply
#75
Xzibit
rtwjunkie, post: 3600200, member: 56774"
You know it's not though. This wasn't the staff's first foray into political opinion.
That's the issues. Opinion based which is contradicted by Krzanichs own quotes. Not even a well informed opinion. He links back to a June article and the employee memo but completely ignores what Krzanichs says about the deal to several publications.

Lets not dive into how many people jumped on-board without even bothering to read what was actually said.
Posted on Reply
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