Intel To Spend $7 Billion To Set Up New Factory In Arizona

Earlier today, semiconductor giant Intel Corporation announced its intention to expand its facilities in the U.S. state of Arizona with an additional investment of over $7 billion to set up a new factory, CNBC reports. Intel announced plans for this new facility after the company’s CEO Brian Krzanich met with President Donald Trump on Wednesday. According to a White House official, when built, the new multi-billion dollar factory would be “the most advanced semiconductor facility in the world” and will employ more than 3,000 people.

The new Intel factory will be located in Chandler, Arizona where Intel already has facilities that employ over 10,000 people. The new factory would be set up in the next three to four years. In addition to the new plant, another plant that was partly built and left vacant would be revived. The new facility will be used to make the new seven nanometer chips that Intel plans to debut in the next few years. Speaking to news outlets after the meeting with the President, Krzanich revealed that Intel remains committed to the U.S. while adding that the company still maintains most of its manufacturing facilities within the country.

In a statement released by him later, he said, “America has a unique combination of talent, a vibrant business environment and access to global markets, which has enabled U.S. companies like Intel to foster economic growth and innovation. Our factories support jobs — high-wage, high-tech manufacturing jobs that are the economic engines of the states where they are located.”

President Donald Trump, with Intel CEO Brian Krzanich [Image Bay Pablo Martinez Monsivais/AP Images]

In an email to Intel employees, Krzanich discussed his company’s growth.

“Intel’s business continues to grow and investment in manufacturing capacity and R&D ensures that the pace of Moore’s law continues to march on, fueling technology innovations the world loves and depends on. This factory will help the U.S. maintain its position as the global leader in the semiconductor industry. Intel is a global manufacturing and technology company, yet we think of ourselves as a leading American innovation enterprise.”

According to Intel, the new facility will be called Fab 42. The company added that the new plant would also help local businesses and fuel long-term job opportunities in the region.

“The completion of Fab 42 in 3 to 4 years will directly create approximately 3,000 high-tech, high-wage Intel jobs for process engineers, equipment technicians, and facilities-support engineers and technicians who will work at the site. Combined with the indirect impact on businesses that will help support the factory’s operations, Fab 42 is expected to create more than 10,000 total long-term jobs in Arizona.”

Intel Factory Arizona

After the meeting and the subsequent announcement, President Trump tweeted his thanks to Krzanich and called the factory a great investment.

In the internal email to Intel employees, the CEO attempted to preemptively answer queries from employees. One of the first questions that was addressed talked about the need for Intel to make this announcement at the White House? This is what Brian had to say about it.

“Intel is proud of the fact that the majority of our wafer manufacturing and R&D is based in the United States. This is due to the great infrastructure we have at our U.S. sites, our talented and highly skilled workforce and the proximity to our R&D facilities in Oregon. We’ve maintained this U.S.-based manufacturing even though approximately 80 percent of our product is sold outside the United States—we’re one of the top 5 exporters and top 2 R&D spenders in the U.S.—and despite the fact that from a tax and regulatory position we have been disadvantaged relative to the rest of the world where we compete. That’s why we support the Administration’s policies to level the global playing field and make U.S. manufacturing competitive worldwide through new regulatory standards and investment policies.”

Interestingly, this development has come close on the heels of several technology companies, including Intel, filing a legal brief that opposed Trump;s controversial travel freeze.

[Featured Image by Recklessstudios/Pixabay]