Intel: We're spending $7 billion on U.S. plants

Intel: We're spending $7 billion on U.S. plants

Summary: Intel said Tuesday it will spend $7 billion over the next two years to roll out 32 nanometer manufacturing plants in the U.S.

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TOPICS: Intel
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Intel said Tuesday it will spend $7 billion over the next two years to roll out 32 nanometer manufacturing plants in the U.S.

The chip giant said the investment will be made in existing manufacturing sites in Oregon, Arizona and New Mexico and create 7,000 jobs (statement). 

CEO Paul Otellini said the effort is designed to bolster U.S. manufacturing and push 32 nm factories, which were described as "truly extraordinary." Intel noted that 75 percent of its manufacturing operations are in the U.s. along with its R&D and capital investments. 

According to the company, Intel will accelerate 32 nm production with its Westmere production in 2009 with more products to follow in 2010. Here's where Westmere fits in on Intel's product roadmap:

While it's nice to write about a company actually creating jobs, the timing of Intel's announcement is curious given the stimulus bill that's being debated. I looked to see if there were any depreciation benefits for companies that build out in the U.S. but didn't find anything that would directly apply to Intel's move--unless there's an argument that 32 nm chips somehow help broadband adoption.

Topic: Intel

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18 comments
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  • A private business creating ....

    ... high tech jobs in the U.S. is a good thing whether or not they get some benefit from the stimulus. Why would you even try to question their motives?
    ShadeTree
    • I'm not questioning anything but

      If there was advanced depreciation or some incentive from the stimulus bill that would be relevant to the story. Not good or bad or questioning any motives, but relevant--especially if some carrot could entice others to follow Intel's lead.
      Larry Dignan
      • There will be a benefit for business that are able to create jobs in the US

        They have said that time and time again.

        My question here would relate to how it is they are creating jobs here when they just laid off a bunch of people.

        Maybe contract position creation?

        Is it getting to expensive or will it get too expensive to have other countries make it?

        Is it possible the US is now directing its agencies to only buy american when possible?

        Are these things going to drive business back to the US just because of lost businss or exclusion from US contracts?
        Been_Done_Before
      • Tax credit for job creation

        Actually Obama was talking about tax credits for companies that created jobs in the US in his original stimulus proposal but someone shot it down as being too expensive.
        map771
    • I agree! Much applause and respect to Intel

      Thanks Intel! This makes me feel even better about buying the $7,000 Core i7-based PC I just ordered last week.
      BillDem
  • Sometimes a cigar is just a cigar

    Why must people try to find neferious motives in everything?

    It was just and anouncement, nothing more. Must everything be timed to when a bill is, or is not, being debated?
    GuidingLight
    • THere are idiots everywhere

      And they think that behind every move or decision there is a grand unified conspiracy theory to justify why certain things happen at certain
      times.

      Infact, companies with good amounts of spare cash now should be using
      this down turn into a time to invest into their business; the cost of capital
      expenditure is down, the cost of materials and resources are down - its
      the best time to do it so that when the upswing form the economy does
      occur - they'll be in a competitive position.
      Kaiwai
      • cost of capital

        Excellent point. Cost of capital is down, a perfect time for companies with spare cash to invest. When the economy does rebound, and it will, they will be in great shape to profit from their efforts. Profit is good! That is what keeps our economy going.
        rcbarr83@...
    • motives

      An interesting question. "Why must people try to find neferious motives in everything?" The answer could be human nature. Some people always question everyones motives, and there are those who seldom question motives at all, also dangerous. Questioning another's motives a little can be healthy, but those who question negatively all the time, to me are unhappy people who find pleasure in bringing negativity to others.

      What ever Intel's motives, it is good to see a technology company taking the initiative to bring manufacturing back to the U.S.--where it started in the first place. In my studies in business, the facts are, manufacturing some products costs more in other countries than in the U.S. and I think we will see, increasingly, more companies coming back to the U.S.

      Companies must profit to stay in business, and it is up to the leadership in these companies to make sure they are, making changes where necessary. A company will not make a move like Intel has if the will not be profitable. And, we should not expect them to.
      rcbarr83@...
  • Spending $7 billion is simply irresponsible...

    ...now that we're a Socialist country. Did Intel get The Obama's blessing before spending this money?
    bricar2
    • C'mon...

      It's only $7 billion. That's the new $7 million. Hell, we're stimulating with almost $1 trillion. Pocket change man. pocket change. ;)
      Larry Dignan
    • socialist country

      You are right, or that is what it appears. Those of us who do not what that should combat it with being entrepreneurs. Do not take part in the hand out. Show the leaders that we only need good hard working individuals to do what it takes to make our country financially strong again. That is done on the backs of entrepreneurs. People who will work harder for their own businesses that they would for someone else's.

      Obama is our president, and as long as the American people keep holding out their hands for financial rescue, he will try to take from the rich to give to the poor, "even out the wealth." As most of know already, socialism did not work in Russia, and it will not work anywhere else for long. It stifles creativity, and growth and always will.
      rcbarr83@...
  • RE: Intel: We

    They've always done this during down cycles. That is why they are always one step ahead in technology and bringing out new products.
    rick.vizzerra@...
  • Awesome news!

    Another reason to love Intel.

    Thanks for the article!
    HypnoToad
  • Intel Giveth

    What Intel giveth Microsoft taketh away.

    Love Linux
    micealgallagher
  • RE: Intel: We

    Contractors will use illegal aliens for the actual plant construction since Obama killed e-verify and with congress planning to import another 3 million H1B visas in the next three years guess who will get any actual manufacturing process jobs? Not Americans...........
    mrmiata7@...
  • Stimulus?

    It seems the "stimulus bill" funds only ideological programs. It's great to see a company investing in this country.
    lmenningen
  • RE: Intel: We

    Because of their (Intel) move, certain things will happen at the appropriate time. As stated?.since the cost of capital expenditure is down, this will result with everything in place when the economy picks up. We are not privy to all the reasons Intel made this decision and it may have been just a financial move taking advantage of timing. Behind every move good or bad there is a ?end result?, planned or not. A naive attitude that a cigar is just a cigar, or to call it a grand unified conspiracy theory, I guess would prove there are idiots everywhere. There will be a end result to Obama killing e-verify and Congress importing 3 million H1B visas and I don?t think it will be what anyone could call good.
    If Intels decision was made based on financial, and these political decisions, then cheap labor played into it. Maybe it?s about time more Americans begin to speak up to these decisions that congress and the president are making.
    dmarie46