Intel CEO Announces $7 Billion Factory Investment, Creation Of 3,000 New Jobs During Trump Meeting

Tyler Durden's picture

During a meeting between Intel CEO Bryan Krzanich and President Trump at the White House, the chief executive of the world's largest semiconductor maker told the president that his company would invest $7 billion in a new factory in Arizona. Krzanich said the investment is an expansion of Intel’s presence in Chandler that will enable a plant capable of advanced 7-nanometer chip production. The partially built Fab 42 facility will be completed in 3 to 4 years and is expected to add 3,000 company jobs.

Krzanich added that Trump's "advantageous" tax and regulatory policies are partly responsible for their decision to announce the new factory at the White House. Trump called the investment "a great thing for Arizona," and said the products will be "amazing."


Fab 42 in Chandler, Ariz.

We do find it It is somewhat ironic that the same chip fabrication facility was used by Intel to appease none other than Trump's predecessor, Barack Obama, to wit:

The White House has announced that following his State of the Union address, President Barack Obama will travel to the Phoenix area on Wednesday to deliver remarks at Intel Corporation’s Ocotillo campus in Chandler, Ariz. President Obama visited Intel’s Oregon campus in 2011, during that visit, Intel announced a $5 billion investment to build Fab 42 in Chandler, Ariz. This visit presents an opportunity for Intel to showcase progress on the construction of Fab 42 and the investment in action.

And here is the Obama press release from 2012:

In 2011, Intel announced a more than $5 billion investment to build the new chip manufacturing facility, called Fab 42, in Chandler, bringing thousands of construction and permanent manufacturing jobs to Intel’s Arizona site. Fab 42 will be the most advanced high-volume semiconductor manufacturing plant in the world. The construction of this complex, high-tech facility will require thousands of people to put in more than 10 million hours.   

Intel currently builds most of its chips in factories in Oregon, Arizona and New Mexico. According to Bloomberg, it also has plants in Ireland, Israel and China as well as test and assembly facilities in China, Malaysia and Vietnam.  Last year, the Santa Clara, CA-based company said it plans to boost spending in 2017 on new plants and equipment to about $12 billion, an increase of about $2 billion from last year. Intel has about 106,000 employees around the world. It noted that the expansion would not contribute to an incremental capex outlay.

Key excerpts from the Intel press release below:

Intel Corporation today announced plans to invest more than $7 billion to complete Fab 42, which is expected to be the most advanced semiconductor factory in the world. The high-volume factory is in Chandler, Ariz., and is targeted to use the 7 nanometer (nm) manufacturing process. It will produce microprocessors to power data centers and hundreds of millions of smart and connected devices worldwide. The announcement was made by U.S. President Donald Trump and Intel CEO Brian Krzanich at the White House.

 

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.

 

Context for the investment was outlined in an e-mail from Intel’s CEO to employees.

 

“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,” said Krzanich. “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,” Krzanich added. “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.”

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FireBrander's picture

Yeah, yeah, but, but....um, uh...that was all planned while Obama was President, um, so, no credit to Trump.;)

/sarc

J S Bach's picture

Another successful pro-America "deal" for the Trumpster.

God, how these actions must make the Left seethe.

Shocker's picture

Great to see...

Another one to add to the winning list - http://www.dailyjobfix.com

.

Not tired of winning yet

 

Son of Loki's picture

All this job creation is driving snowflakes and soros terrorists crazy.

They HATE job creation.

Hillary and soros HATE America.

The Democrat welfare state cannot survive job creation.

mtl4's picture

Obviously Intel knows how to recycle their stuff too!

El Oregonian's picture

Let the crybabies piss and moan, Sir. Bring in those wonderful good-paying jobs Mr. President. We sure need them...

ed31337's picture

Most advanced 7 nm fab, phbbbt, complete rubbish. They've been building that piece of garbage for decades now, wasting billions of dollars, and at the end of the day, it won't hold any value over the competition.

Intel is fcked, even with a Trump presidency. At such tiny geometries, leakage becomes so great that the power consumption of such devices will make it worthless to use such fab. We've got a whole generation of people out there who have never even used an Intel PC, instead they jumped straight into smart phones and tablets, powered by ARM processors, not Intel. The power consumption of ARM is very low, so efficient that they don't need any fans to cool them and they can run off of a tiny battery all day long. Compared to Intel's expensive, noisy, power hungry laptops, it's clear to me at least, that Intel is on it's way out the door of obsolesence.

MK13's picture

If he creates environment for positive economic growth and helps Main Street recession to end - Dem and libtards are done. South, West, and Rust Belt would just vote for GOP candidates - Dems would become party of irrelevance. Fantastic!!

FireBrander's picture

"Intel (Santa Clara, CA-based company) currently builds most of its chips in factories in Oregon, Arizona and New Mexico"

WTF?

Were are the California factories?

Cal-exit please!

55 Electoral votes gone...Dems NEVER win the White house again..and probably never a Congressional Majority...Trump should push for Cal-exit...

jimsoong25's picture

I remember the Intel CEO, 4-6 years ago, saying that he would never build another chip plant in the US.  He said the red tape and environmental regulations made the US noncompetitive. 

 

Ignorance is bliss's picture

America First !!! Finally..some solid wins for the country. Those little leftist snowflakes should get on the ground and thank the lord someone is trying to deliver them from poverty.

Kirk2NCC1701's picture

Smart move by Intel. You just can not risk this tech going offshore. Or you might as well just give it to the Chinese and Koreans. 

Mr. Schmilkies's picture

Oh this is just fab.

buzzsaw99's picture

yeah, 3000 H1B immigrant jobs.

PirateOfBaltimore's picture

My cousin actually works for Intel -- not on an H1-B, and not at a manufacturing facility.

 

Unlikely that manufacturing plants would employ H1-Bs.  Now, for R&D, design of actual chips, testing/QA, etc it is more likely.

rtalcott's picture

Intel definitely has H-1Bs in the FABs....can't quote a percentage but they are definitely there.  In general FAB jobs are Sustaining Engineering jobs and are relatively low skill compared to R&D.  put the Sustaining Engineers in a start-up environment where they need to really think and produce and they tend to underachieve and that's being polite.

GFKjunior's picture

Have no idea about the size of intel's workforce and departments but they employ a couple thousand h1b1's company wide. 

 

http://www.myvisajobs.com/Visa-Sponsor/Intel/267260_Visa.htm

 

homonohumanus's picture

Well Trump can't go ungainst HB too openly but there is plow? How about claiming that some tech giant have how to that are critical to the US national security, hence employing too many foreigners is unformal trade of knowledge, how-to and IPs.

Most of the "tech giants" have received governmental money to get started, they need to be held by the balls... I mean accountable for their actions.

 

Now I see no reason to stop migration of bright brains but the whole thing needs to be overseen from an IP and security POV. Those people bring their brain but they leave with lots of moneys and knwoledge of IP their originating countries lack!

It is a non accounted for transfert of technology, share holders should be more aconcerned about this :)

Kirk2NCC1701's picture

If they hire ANY H1B types, then you might as well just hand over the tech to overseas competitors*.

* China, Korea, Japan, Russia, India 

desertboy's picture

Almost inevitable.  On to Taiwan, there to China.

Raffie's picture

Yes, now for the wait.

BabaLooey's picture

Bravo.

Now, increase this type of work......... times 10

More of this, less yammering.

As Mel Brooks would say: Work work work!

https://www.youtube.com/watch?v=xMOWYGrtY9c

Raffie's picture

Saying and doing are 2 different things.

So will wait to see.

TwelveOhOne's picture

The work part I got.  But calling boobies "boys", that must be some Jewish thing?

rtalcott's picture

However, Rio Rancho...maybe 2,800 employees will be gone shortly...not saying this is a bad decision on Intel's part but one needs to look at creation - destruction.

rtalcott's picture

It didn't help that the state and specifically the IP arm of UNM took Intel to court over an IP issue and even attempted to get it in front of the Supreme Court after it was dismissed at all the lower courts.

Bill of Rights's picture

WINNING! liberals hate that word work, but they sure love their Food Stamps EBT and Free Obamacare....

Berspankme's picture

This is bad. All those poor employees will now suffer from job lock

mary mary's picture

Apparently, P.C.ers are going to have to add "winning" to their "P.C. Hate Speech Blacklist".   :-)

Unfortunately, that means:

1. no more sports

2. no more war movies

3. no more cops-and-robbers tv shows

4. no more prizes of any sort

5. no more "winning hearts and minds".

King Tut's picture
King Tut (not verified) Feb 8, 2017 3:38 PM

ZH- polishing Don's nuts for the next 4 years

PirateOfBaltimore's picture

It's amazing how the MSM didn't get nut-polishing fatigue or repetitive motion injuries from polishing Obama's nuts for >8 years.

cheech_wizard's picture

Yo, Marxist Fuck, you've been demoted to dingleberry picker.

Standard Disclaimer: At least until you can be replaced by a robot.

mary mary's picture

I love walking like an Egyptian.  :-)

pot_and_kettle's picture

DAMMIT, Donald - >more< winning???

wcvarones's picture

What about California?

Are they going to pass on the opportunity to ride Jerry Brown's high-speed choo-choo?

BlueHorseShoeLovesDT's picture

They built it a few years ago and then moth balled it

TwelveOhOne's picture

"Why build one when you can build two for twice the price?"

Citizen_x's picture

 

Nice !   All investment in the USA is good.  Keep adding more Trump.

DaBard51's picture

California: Tough to do nanometer-scale lithography when the ground perpetually shakes.

http://earthquake.usgs.gov/earthquakes/browse/stats.php

see "Earthquakes by State"; California

 

 

 

When nine hundred years old you become, look this good you will not.

south40_dreams's picture

As long as they don't add one more job in California. Fvck CA

SharkBit's picture

Winning!  Hopefully that shuts Waco McPsycho up for a day or two.

BlueHorseShoeLovesDT's picture

Don Corleone is good at the shake down

onwisconsinbadger's picture

what tax breaks were discussed ? Tit for tat.

sTls7's picture

Good Job Trump!

Baby Eating Dingo22's picture

---------

hi tech hi wages jobs?

Sounds fantastic!!

Now they just need to find qualified help

With such a de-emphasis on education in the US, tRUMP focusing on bringing back the pony express,  and banning of immigrants, how's that gonna work?? 

swampmanlives's picture

Damn now I will have to pay more for those intel cpus...

Kickaha's picture

Arizona?

Production process

The production of semiconductors includes a series of very intricate and complex steps. In brief, the production process starts with the manufacturing of extremely pure silicone ingots, which are sliced into wafers. These wafers are treated in a series of steps in which the electronic circuits are deposited, etched and polished. 

The use of water is vital to the manufacturing of semiconductors. The amount of water required for specific chip or electronic component depends on size and on the amount of layers. According to (GWI 2009):

Industry statistics indicate that creating an integrated circuit on a 300 mm wafer requires approximately 2200 gallons of water in total, of which 1500 gallons is ultra-pure water.

 Ultra-pure water (UPW), which is defined as water of utmost purity and lacking in microorganisms, minerals, or trace organic or nonorganic chemicals, is essential to several purification steps (GWI 2009, PNPPRC 2000). One of the more UPW intensive steps occurs after a chemical-mechanical polish. This process leaves a fine grit/slurry residue which needs to be washed off with ultrapure water. Once the wash water is evaporated, it is essential that there remains no mineral residue, otherwise short-circuiting and other defects may occur.

 The semiconductor industry spends around $1 billion every year on water and wastewater systems. Much of it goes into UPW production from influent city water. A fab may use between 2 to 4 million gallons of UPW every day, which is approximately equivalent to the water use of a city with a population of 40 to 50 thousand.

mary mary's picture

New Jersey has plenty of water.  If New Jersey could just pry its way out of the grip of the trade unions....