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.
Add your own comment

199 Comments on On Intel and Their $7B White House Affair

#76
rtwjunkie
PC Gaming Enthusiast
TheMailMan78, post: 3600202, member: 39776"
I don't remember another time other than that W1zz poll. Got links?
Hmmm, you're correct, I think. I can't find another one. I guess I'm a little fuzzy due to the bringing of politics into every other thread, (even when totally tech-themed thread) over the last year by members. It's getting ridiculous.
Posted on Reply
#77
OldSchool Tech
Was announced in 2011 but never came into fruition...that just makes Trump look a lot better lol. It proves that he can make things work. 8 years Obama only talk not even 1 year of Trump and there is action ^_^.
Posted on Reply
#78
qubit
Overclocked quantum bit
@Raevenlord Hangonaminite! You mean to say that Intel and Trump are not as pure and white as the driven snow? I'm shocked, shocked I tell you! :eek::eek:

Great piece, more like this welcome. :)
Posted on Reply
#79
Ahhzz
yotano211, post: 3599661, member: 103073"
100% pure 3 minute Intel commercial at the oval office.

How can a business decide on expansion when laws are not in even place yet.
They decided on that expansion years ago.

OldSchool Tech, post: 3600220, member: 169911"
Was announced in 2011 but never came into fruition...that just makes Trump look a lot better lol. It proves that he can make things work. 8 years Obama only talk not even 1 year of Trump and there is action ^_^.
Hahahah let's face it. It doesn't take much to make him look better :)
Posted on Reply
#80
fusionblu
It truly saddens me to find I log back into my account after such an inactive period to attack this article.

Personally it would have been fine if the article kept brief and straight to the point that Intel exec made an appearance in the White House and there is a possibility a fab plant previously postponed indefinitely previously might be continued completed instead (with pluses such as more jobs, better tech, etc), but like many medias around the world cutting down the quality of news to favour the agendas of their almost anonymous backers at every possible turn TPU has been afflicted with the common plague at playing hostile politics and falling in the current line of mainstream media agencies who seem almost too busy shaming Trump like a baby throwing it's toys out of the pram.

I could try and make a strong post and start making quotes here and there but a lot of that has been done already after reading through all four pages from start to present.

Please keep to technology news. TPU has avoided politics for a reason and is also why myself and many come here.

Would rather be seeing an in-depth review of AMD's new CPU and AM4 chipset than more politics and prefer that TPU leaves hostile and general politics to the mainstream media agencies.
Posted on Reply
#81
Totally
"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 [only] term ends."

ftfy
Posted on Reply
#82
Banned2017
Totally, post: 3600237, member: 90126"
"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 [only] term ends."

ftfy
Watch the video before you make hearsay comments. Might as well say Lady Gaga had some relations with the Intel CEO that forced them to build...
Posted on Reply
#83
R-T-B
Meh, politics are so scary to me right now honestly that I think the more that speak up about it the better. So while I usually prefer a politically agnostic site, as long as it's marked as an editorial I'm actually all for this.
Posted on Reply
#84
Ferrum Master
I'm also strongly against politics on TPU. Okay few jokes and mentions... but in very minimal dosages.
Posted on Reply
#85
siluro818
How do some people manage to reconcile themselves having the right to political statement versus others NOT having the right to one is beyond me...
Levels of hypocrisy through the roof lol
Posted on Reply
#86
Xzibit
siluro818, post: 3600283, member: 142649"
How do some people manage to reconcile themselves having the right to political statement versus others NOT having the right to one is beyond me...
Levels of hypocrisy through the roof lol
Well for starters everyone is entitled to there own opinion even if it is ill informed and that seams to be the case here.

TPU
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.
Why did someone have to say it ? I don't recall anyone saying anything here at TPU.

Looks like hes the one spinning the truth to his own benefit.

TPU
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.
But he did and he said he did

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.”
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.
Hes taking this Tech story which he didn't even get right and wrapping it into a political hit job.
Posted on Reply
#87
Ahhzz
Xzibit, post: 3600292, member: 105152"
Well for starters everyone is entitled to there own opinion even if it is ill informed and that seams to be the case here.



But he did and he said he did

....
Yeah, because everyone at big business is known for telling the public truthfully exactly why they decide to make business decisions, especially those that might be considered unfavorable. And neither Intel, nor AMD, nor NVIDIA is ever known for running benchmarks on games coded to run better on their equipment.


Oh, and the tooth fairy is real.
Posted on Reply
#88
R-T-B
Xzibit, post: 3600292, member: 105152"
Why did someone have to say it ? I don't recall anyone saying anything here at TPU.
You know what he meant and it's been said plenty if not here, then elsewhere.
But he did and he said he did
Present tense vs future tense. He's speaking there to policies that may/may not ever happen, not ones that presently exist.
Hes taking this Tech story which he didn't even get right and wrapping it into a political hit job.
It's an editorial, not a hit job. Trump isn't dead because of this article. You seem to like to use a lot of buzzwords.
Posted on Reply
#89
Xzibit
Ahhzz, post: 3600306, member: 49663"
Yeah, because everyone at big business is known for telling the public truthfully exactly why they decide to make business decisions, especially those that might be considered unfavorable. And neither Intel, nor AMD, nor NVIDIA is ever known for running benchmarks on games coded to run better on their equipment.


Oh, and the tooth fairy is real.
How is this one unfavorable ?

the tooth fairy is real. Hes got his own YouTube channel

Posted on Reply
#90
renosablast
One inconvenient truth is that Obama did much to wreck the US economy and jobs market. Much of what the
new administration is doing is much needed "damage control" and/or "damage mitigation" to try and get the US and its economy and jobs market back on track. Intel's decision to suspend operations at that fab facility was no doubt a combination of what was a shrinking market as well as the outlook of trying to do business in an ever-more-troublesome-and-expensive business climate. Give the new guys a chance and let the results prove them right or wrong before we go looking for boogeymen behind every "deal".
Posted on Reply
#91
Basard
I can't wait until Monday so I don't have to see this crap every time I click my TPU button.
Posted on Reply
#92
siluro818
renosablast, post: 3600321, member: 100705"
One inconvenient truth is that Obama did much to wreck the US economy and jobs market.
Oh, rly?
Posted on Reply
#93
ArchStupid
So TPU hasn't learned their lesson from past attempts and try to make political pieces again?
No one's interested in your edgy political opinions.
Posted on Reply
#94
Aquinus
Resident Wat-man


I think people see politics and think it's a sign that you suddenly don't have to respect other users. I personally don't really care if you don't think should have have had to read this. All I see are a bunch of people who are unhappy because its politically related and they don't agree with it, so need to make noise to make this disagreement known. So, all in all, regardless of its content, a thread being political doesn't give you the green light to be a douche bag.

Carry on and remember, just because it's a politically related post doesn't mean the forum guidelines don't still apply.

Spoiler: Explicit Content, Reader beware; It's a short rant.
If this thread really got you angry, then maybe you should step away from the computer for a while and remember that it's only a fucking forum and chill the fuck out. The replies are more annoying than the initial post. I'm more disappointed in the inflexibility and need to voice disagreement in inappropriate ways than either having a civil discussion or just shrugging if off and getting on with your fucking life.
Posted on Reply
#95
ensabrenoir
.....All this complaining......You really wanna start some political confusion let's see how many Intel/AMD users are Republican /Democratic. Curious to see if there is any coralation. #troublemaker. Total pr stunt for both sides with no real substance. Volitile time in which were living right now......
Posted on Reply
#96
rtwjunkie
PC Gaming Enthusiast
siluro818, post: 3600361, member: 142649"
Oh, rly?

Of course you are aware that U.S. unemployment numbers go down after awhile, even in hard times, because the numbers only report those on unemployment payments and actively seeking work. Once the payment period for that person ends or if the stop actively searching for a job through unemployment agencies, their numbers are not counted anymore. So jobs good news the government puts out is smoke and mirrors. Citing charts and numbers of that stat doesn't tell the real story.

And it is a fact that the Obama presidency anti-oil stance decimated the oil industry here in Louisiana, with nearly 80% of the oil workers out of work. Of course that filters out in waves to all the associated support businesses as well.
Posted on Reply
#97
R-T-B
rtwjunkie, post: 3600394, member: 56774"
Of course you are aware that U.S. unemployment numbers go down after awhile, even in hard times, because the numbers only report those on unemployment payments and actively seeking work. Once the payment period for that person ends or if the stop actively searching for a job through unemployment agencies, their numbers are not counted anymore. So jobs good news the government puts out is smoke and mirrors. Citing charts and numbers of that stat doesn't tell the real story.
It's still such a huge number as to make claims that Obama "wrecked" our economy rather bogus at best.

rtwjunkie, post: 3600394, member: 56774"
And it is a fact that the Obama presidency anti-oil stance decimated the oil industry here in Louisiana, with nearly 80% of the oil workers out of work. Of course that filters out in waves to all the associated support businesses as well.
Personally, the global fall in ppb of oil probably had way more to do with that than Obama, no?
Posted on Reply
#98
Dave65
dwade, post: 3599639, member: 106554"
In b4 liberals protest against Intel.
KICK yourself in the teeth!
Posted on Reply
#99
renosablast
Oh, rly?
[IMG]https://www.techpowerup.com/forums/proxy.php?image=http%3A%2F%2Fi.imgur.com%2Fmc2WWHr.png&hash=e8ce6987a1febe7baf855a16816ee82b[/IMG]

As has been proven NUMEROUS times that the "unemployment rate" has nothing whatsoever to do with what percentage of people who lost their jobs have been re-employed again, it is merely a measure of how many are collecting unemployment benefits. Does not take into the consideration far more people than the 7 million who are currently receiving benefits that no longer receive their benefits ran out, no those working at part time jobs that used to be full timers.

Do not allow yourself to be deluded by an almost meaningless statistic.
Posted on Reply
#100
ensabrenoir
Politics bring out the worse in people.....
renosablast, post: 3600427, member: 100705"
Oh, rly?

As has been proven NUMEROUS times that the "unemployment rate" has nothing whatsoever to do with what percentage of people who lost their jobs have been re-employed again, it is merely a measure of how many are collecting unemployment benefits. Does not take into the consideration far more people than the 7 million who are currently receiving benefits that no longer receive their benefits ran out, no those working at part time jobs that used to be full timers.

Do not allow yourself to be deluded by an almost meaningless statistic.
Any number any graph any statistic can be interpreted/slanted/made to show just about anything you want to believe for or against.... What's truly sad is the lack of respect for difference of opinion. Seems America has forgotten what is written on the base of the statue of Liberty.....And that unless your a Native American you are an immigrant or the descendent of one.......
Posted on Reply
Add your own comment