October 19, 2010

Intel Investing In US Factories For Nanometer Chips

Intel Corp said on Tuesday that it will invest $8 billion into producing next-generation computer chips.

Intel said the investment over the next several years will fund deployment of its 22-nanometer (nm) chip manufacturing process across several factories in the U.S.

The microprocessor maker said it will also fund construction of a new fabrication plant in Oregon.

It said it will begin production of its first 22nm microprocessors in late 2011.

Intel said the project will support 6,000 to 8,000 construction jobs and result in the creation of 800 to 1,000 new permanent high-tech jobs.

"The most immediate impact of our multi-billion-dollar investment will be the thousands of jobs associated with building a new fab and upgrading four others, and the high-wage, high-tech manufacturing jobs that follow," Intel president and chief executive Paul Otellini told AFP news.

The new project is scheduled to begin research and development in 2013, and two existing factories in Arizona and Oregon will be upgraded.

The chip maker said the upgrades will create the manufacturing capacity to allow for continued growth of the PC market and to address growing markets like mobile computing.

About 75 percent of Intel's microprocessor manufacturing takes place in the U.S., while the majority of its sales occur overseas.

"Intel makes approximately 10 billion transistors per second. Our factories produce the most advanced computer technology in the world and these investments will create capacity for innovation we haven't yet imagined," Brian Krzanich, manager of Intel's manufacturing and supply chain, said in a statement.

Intel, which has 80,000 employees, including 45,000 in the U.S., said earlier this month that the U.S. needs to provide tax credits or tax holidays for companies that build new factories on its soil to promote jobs.

It said that it can cost $1 billion less to build and operate a semiconductor factory in countries other than the U.S.  Intel said about 90 percent of the difference was because of tax and incentive policies rather than labor costs.

"Clearly we'd like that passed but if you take a look at it we have a large manufacturing base in the U.S. It's a great asset both from a hardware standpoint, but also the employees that are highly skilled and we're going to utilize that," Krzanich told reporters.


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