If you thought Intel's stack-dropping acquisition of McAfee for $7.68 billion was a lot, you'll drop your jaw at this one. The world's largest chip manufacturer said earlier this week that it will spend somewhere between $6 and $8 billion on factory upgrades in the US, which will create anywhere from 800 to 1,000 manufacturing jobs.
Intel plans to renovate and renew plants in Oregon and Arizona and looks to open a new plant in Oregon. The implementation of these plans will create up to 8,000 construction jobs and looks to be in place over several years, said an Intel official.
For more on the big spending, follow the break.
Intel's budget will mainly be spent on their 22-nanometer production. This production lowers overall costs and makes semiconductors more capable. The plants that make these semiconductors operate 24 hours a day, every day of the year and costs hundreds of millions to build and over a billion dollars to fill with equipment to sustain production.
This news is not only good for Intel, but for the tech industry and the US. 1,000 permanent jobs is great and 8,000 construction jobs is perfect for those out of work and in-between temp jobs. Would you look at that? You don't have to only spend money on worthless companies who fake their way into psuedo-success (take notes, Apple). Sometimes spending billions leads to job creation!
We have the full press release here.
Intel Corporation announced today that the company will invest between $6 billion and $8 billion on future generations of manufacturing technology in its American facilities. The action will fund deployment of Intel's next-generation 22- nanometer (nm) manufacturing process across several existing U.S. factories, along with construction of a new development fabrication plant (commonly called a "fab") in Oregon. The projects will support 6,000 to 8,000 construction jobs and result in 800 to 1,000 new permanent high-tech jobs.
"Today's announcement reflects the next tranche of the continued advancement of Moore's Law and a further commitment to invest in the future of Intel and America," said Intel President and CEO Paul Otellini. "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."
The PC industry is achieving a significant milestone this year with 1 million PCs shipping per day. The upgraded fabs create the capacity for the continued growth of the PC market segment and additional computing markets Intel is addressing, such as mobile and embedded computing.
The new investments reinforce Intel's leadership in the most advanced semiconductor manufacturing in the world. Intel's brand-new development fab in Oregon – to be called "D1X" – is scheduled for R&D startup in 2013. Upgrades are also planned for a total of four existing factories in Arizona (known as Fab 12 and Fab 32) and Oregon (known as D1C and D1D).
"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," said Brian Krzanich, senior vice president and general manager of Intel's Manufacturing and Supply Chain. "Intel and the world of technology lie at the heart of this future. Contrary to conventional wisdom, we can retain a vibrant manufacturing economy here in the United States by focusing on the industries of the future."
While Intel generates approximately three-fourths of its revenues overseas, it maintains three-fourths of its microprocessor manufacturing in the United States. This new investment commitment also allows the company to maintain its existing manufacturing employment base at these sites.
This new capital expenditure follows a U.S. investment announcement made in February 2009 to support state-of-the-art upgrades to its manufacturing process. Those upgrades resulted in 32nm process technology which has already produced computer chips being used today in PCs, servers, embedded and mobile devices around the world. Intel's first 22nm microprocessors, codenamed "Ivy Bridge," will be in production in late 2011 and will boost further levels of performance and power efficiency. By continuing to advance manufacturing process technology, additional features and functions can be integrated and enable devices with sleeker designs, higher performance and longer battery life at lower costs for users.