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

#101
rtwjunkie
PC Gaming Enthusiast
R-T-B said:
It's still such a huge number as to make claims that Obama "wrecked" our economy rather bogus at best.



Personally, the global fall in ppb of oil probably had way more to do with that than Obama, no?
PPB, yes. However, his administration also refused to extend drilling leases on many rigs and wells, causing them to shut down until a friendlier administration.

Also, I hope you aren't thinking I was claiming he wrecked the economy. I merely pointed out that using skewed jobless numbers to make the point that things are great isn't telling the whole story.
Posted on Reply
#102
PowerPC
dalekdukesboy said:
Amen again. It's a hit piece disguised as some lame attempt at journalism...
It's not even journalism, it's propaganda. It's an anti-Trump add. I wouldn't even be surprised if someone payed them to post this crap before the weekend. People like George Soros have a lot of money and they really hate Trump. Protesters, politicians, voters, journalists... You name it. He spent $200.000.000 just on the Hillary campaign, who cares? He's a billionaire and makes money by distabilizing currencies and therefore countries. Lybia, Syria, Egypt, Afghanistan, Irak, who cares? That's all Hillary's accomplishment.
OldSchool Tech said:
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 ^_^.
Exactly, Trump comes in and something good gets announced. But they will never acknowledge that Trump could even remotely do any good. That just bounces off them like a wall. No matter what he does, all the so called journalists will find an angle to write a hit piece on him. Facts are degraded to second class citizens, but liberals just don't care, because "Trump is horrible in every way", who needs proof, right? Opinions are enough for liberals to attack anybody for anything. And this is just what this article is, an opinion piece.
Posted on Reply
#103
FordGT90Concept
"I go fast!1!11!1!"
renosablast said:
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.
Here's the 6 unemployment metrics. Media/BLS usually goes by U3:


The statistic doesn't at all take into consideration people that have been unemployed for years, those that were forced into early retirement, those that lost a full time job and hold at least one part time job, nor those that lost a higher paying job for a lower paying job.


Look at the daily polls on the right of Gallup:
http://www.gallup.com/home.aspx

Why all economic? Because #1 issue is still the economy:
http://www.gallup.com/poll/1675/Most-Important-Problem.aspx

It was #1 in 2009 when Obama entered his first term, it was #1 in 2013 when he entered his second term, it was still #1 in 2016 which is why Clinton (incumbent) couldn't win, and it's still #1 when Trump took the oath in 2017.


Back on topic: Intel + Trump = economy. Trump won't get a second term if he doesn't remove economy from #1 on that list.
Posted on Reply
#104
ensabrenoir
PowerPC said:
"Trump is horrible in every way", who needs proof, right? Opinions are enough for liberals to attack anybody for anything.
....Trump creates his alt-facts at his convenience....But seriously.....No matter who is in office.....America clowns it's politicians......
Posted on Reply
#105
PowerPC
ensabrenoir said:
....Trump creates his alt-facts at his convenience....
Trump is a reflection of the mainstream media, he just puts a mirror up for them to see who they really are.
Posted on Reply
#106
qubit
Overclocked quantum bit
To everyone who's unhappy about this article since it's political and TPU doesn't normally do politics, I think this is a valid exception. The reason is that what's happening with Trump will affect our technology sector significantly, hence it's very appropriate IMO.

@Raevenlord you might want to expand on this point. :)
Posted on Reply
#107
FordGT90Concept
"I go fast!1!11!1!"
qubit said:
The reason is that what's happening with Trump will affect our technology sector significantly, hence it's very appropriate IMO.
Heh, reminds me of this. I think answer is definitely yes. Intel made it sound like Trump getting elected encouraged them to push forward with the Arizona facility. 7nm though? I bet Trump will be out of office before we see any chips from it though.
Posted on Reply
#108
rtwjunkie
PC Gaming Enthusiast
qubit said:
The reason is that what's happening with Trump will affect our technology sector significantly
Well see now, for that to be a starting premise, you need some facts to make it so.

All leaders, even U.S. Presidents have far less impact on the economy than most common people realize.
Posted on Reply
#109
R-T-B
PowerPC said:
It's not even journalism, it's propaganda. It's an anti-Trump add. I wouldn't even be surprised if someone payed them to post this crap before the weekend. People like George Soros have a lot of money and they really hate Trump. Protesters, politicians, voters, journalists... You name it. He spent $200.000.000 just on the Hillary campaign, who cares? He's a billionaire and makes money by distabilizing currencies and therefore countries. Lybia, Syria, Egypt, Afghanistan, Irak, who cares? That's all Hillary's accomplishment.

Exactly, Trump comes in and something good gets announced. But they will never acknowledge that Trump could even remotely do any good. That just bounces off them like a wall. No matter what he does, all the so called journalists will find an angle to write a hit piece on him. Facts are degraded to second class citizens, but liberals just don't care, because "Trump is horrible in every way", who needs proof, right? Opinions are enough for liberals to attack anybody for anything. And this is just what this article is, an opinion piece.
You must be new to the word " editorial."
Posted on Reply
#110
InVasMani
rtwjunkie said:
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.
Obama detrimentally harmed the auto repair, car parts, junkyards, and construction as well.
Posted on Reply
#111
FordGT90Concept
"I go fast!1!11!1!"
Cash for clunkers? If you mean GM and Chrysler, they did that to themselves. :roll:

Construction collapsed because the financing side of construction collapsed. Happened pre-Obama. It has recovered now. One of the silver linings in the economy actually.
Posted on Reply
#112
InVasMani
ensabrenoir said:
Politics bring out the worse in people.....




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.......
You can't change the fact that the graph is virtually identical from when Obama took office and left office and yet the US population has only grown then take into account the national deficit absolutely spiraled out of control in that same period of time the outlook is grim.
FordGT90Concept said:
Cash for clunkers? If you mean GM and Chrysler, they did that to themselves. :roll:

Construction collapsed because the financing side of construction collapsed. Happened pre-Obama. It has recovered now. One of the silver linings in the economy actually.
Yes cash for clunkers and GM/Chrysler would have been fine either way though the bailout certainly helped them and the banks and people that took bad bank loans did that to themselves as well so it's no different and car companies are deeply connected to bank loans.
Posted on Reply
#113
Joss
To all snowflakes out there I'll leave a life lesson from a sage man



@Raevenlord that's you leaving at the end, close the door please.
Posted on Reply
#114
FordGT90Concept
"I go fast!1!11!1!"
InVasMani said:
Yes cash for clunkers and GM/Chrysler would have been fine either way though the bailout certainly helped them and the banks and people that took bad bank loans did that to themselves as well so it's no different and car companies are deeply connected to bank loans.
The government promoted predatory lending after the Glass-Steagall Act was repealed in 1999 with the Gramm-Leach-Bliley Act. That fundamentally lead to the 2007 collapse of Lehman Brothers followed by the rest of the US economy in 2008.
Posted on Reply
#115
PowerPC
R-T-B said:
You must be new to the word " editorial."
Then you must not know what slander is, or bad and unethical journalism. Even if "fake news" is accepted nowadays doesn't mean it's acceptable. A turd won't smell any better after simply calling it by another name.
Posted on Reply
#116
Raevenlord
News Editor
qubit said:
To everyone who's unhappy about this article since it's political and TPU doesn't normally do politics, I think this is a valid exception. The reason is that what's happening with Trump will affect our technology sector significantly, hence it's very appropriate IMO.

@Raevenlord you might want to expand on this point. :)
Thanks, qubit. Might do so, when there are some tangible changes in that regard (much like rtwjunkie mentioned in the quote below this one).

rtwjunkie said:
Well see now, for that to be a starting premise, you need some facts to make it so.
And it's also great that this article could spark some debate among the flaming. There are some comments that are definitely worth reading.

Joss said:
To all snowflakes out there I'll leave a life lesson from a sage man



@Raevenlord that's you leaving at the end, close the door please.
Thanks, Joss, for making me laugh. You're a cool guy :toast:
Posted on Reply
#117
tacosRcool
I am sad that TPU decided to add politics to their news. Techspot and now TPU...
Posted on Reply
#118
$ReaPeR$
the butthurt is strong in this thread!
Posted on Reply
#119
tacosRcool
siluro818 said:
Oh, rly?

The true unemployment rate is 9.4%.
Posted on Reply
#120
Ahhzz
FordGT90Concept said:
Cash for clunkers? If you mean GM and Chrysler, they did that to themselves. :roll:

Construction collapsed because the financing side of construction collapsed. Happened pre-Obama. It has recovered now. One of the silver linings in the economy actually.
Have to agree here. Have several construction clients, and their business has seriously picked up.
Posted on Reply
#121
dalekdukesboy
diatribe said:
A lot of people responding here need to take a huge chill pill. This wasn't an article knocking on our glorious leader..
Saying "glorious leader"...yeah no sarcasm or "knocking" anyone there. Please, you can't even get through a sentence without showing your hideous bias and contempt then you blab on with a few superfluous sentences of pure bullshit claiming this is relevant when as others' properly stated it's a hatchet hit job not even thinly disguised as journalism. I'll say it again for you snowflakes, he's been there 3 weeks and multiple articles about him with obvious negative intentions....8 years of Obama and I don't recall a single article whatsoever, if there was it probably was positive.
Posted on Reply
#122
InVasMani
That's because they basically hit rock bottom anything is going to trend up at this point it wasn't just the financing side it was the cost of business went up as well due to oil and gas prices being so high. How many went under and didn't come back however? Who bailed them out? They got screwed and the banks got bonus's.
Posted on Reply
#123
InVasMani
dalekdukesboy said:
Saying "glorious leader"...yeah no sarcasm or "knocking" anyone there. Please, you can't even get through a sentence without showing your hideous bias and contempt then you blab on with a few superfluous sentences of pure bullshit claiming this is relevant when as others' properly stated it's a hatchet hit job not even thinly disguised as journalism. I'll say it again for you snowflakes, he's been there 3 weeks and multiple articles about him with obvious negative intentions....8 years of Obama and I don't recall a single article whatsoever, if there was it probably was positive.
Anytime anyone said anything remotely negative about Obama it instantly was rebuked as racist or similar phrases and wording. Just look at what happened with Syria with Obama he bombed the living shit out of them with continuous drone strikes now he pretends to act like their refugee savior. The media drew the line in the sand very early on with Obama that he could say or get away with anything by falsely yelling prejudice out loud because enough people wouldn't disagree since he's black and that could appear prejudice to do so and there is no easier or quicker way to destroy someone's career or business than to slap that label upon them. Hillary is the same kind of scenario except a woman, but they never expected her to lose due leaks of her scandal's coming to light. The whole democratic party looks fake as hell Bernie was either a puppet candidate and played right along behind the scenes or the most spineless full of shit sob ever in modern politics.
Posted on Reply
#124
Relayer
erixx said:
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?
It's what the liberal media does. Intel's opening a new fab. We don't like the current administration. Let's get some spin out there to counteract anything positive that might come from this. Oh, and let's get a plug in for Obama while we're at it. Even though it was his economic climate that put the breaks on the project to start with. But let's not mention that.
Posted on Reply
#125
InVasMani
Liberals always taking credit for anything positive they've done and never owning up to anything negative they've and when in doubt just say the parties switched or make a false remark about prejudice and of course blame Bush about EVERYTHING.
Posted on Reply
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