Intel Announces Plans For Arizona Chip Plant
Microchip maker Intel announced Friday it plans to build a $5 billion state-of-the-art microprocessor factory in Arizona by 2013, greatly increasing it US manufacturing capacity as part of a major global expansion.
The high-tech plant, which will produce microchips with next-generation 14 nanometer line-widths, is expected to bring thousands of jobs to the economy-weakened region, which is offering more incentives to lure in businesses.
Intel CEO Paul Otellini made the announcement during a visit by President Barack Obama to an Intel facility in Hillsboro, Oregon. Otellini said the construction of the new facility — named Fab 42 — will begin the middle of this year and is expected to be complete by 2013.
“Fab 42 will be the most advanced high-volume semiconductor factory in the world,” according to a blog post on Intel’s website.
Back in October Intel said it had planned to spend $6-$8 billion on high-tech manufacturing facilities in Arizona and Oregon, creating as many as 8,000 construction jobs.
“The investment positions our manufacturing network for future growth,” said Brian Krzanich, senior vice president and general manager for manufacturing and supply chain at Intel. “The products based on these leading-edge chips will give consumers unprecedented levels of performance and power efficiency across a range of computing devices from high-end servers to ultra-sleek portable devices.”
Intel unveiled its next-generation microchip — Sandy Bridge — in January. The company said the new chips will yield about a third of the company’s corporate revenue in 2011.
Obama on Friday named Otellini to his jobs council. Otellini said he will serve on the president’s Council on Jobs and Competitiveness, which is headed by General Electric’s chief executive Jeffrey Immelt. The board is dedicated to finding new ways to boost growth, hiring and the education and training of US workers.
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