Brian Krzanich, the CEO of Intel Corp. (NASDAQ: INTC), has announced that his company is investing about $7 billion in a Chandler, Arizona chip making facility. The money will go to complete the making of Fab 42, the said high tech factory. Krzanich met President Donald J. Trump on February 8. In his letter to employees, the CEO wrote Fab 42 represents an investment which will help the future of the US. It will make sure hat the company continues to be the semiconductor industry's global leader.
Advanced tech manufacturing
Fab 42 will churn out chips at the process node of 7-nanometer. This is the most advanced fabrication of chip in the world at the present time. Intel has clearly heeded Trump's call for keeping jobs inside the United States. According to the company, the factory will produce 3,000 white collar jobs with employees withdrawing higher salaries. The company also made the claim that the facility will indirectly lead to about 10,000 longer term employment opportunities in Arizona state.
Krzanich continues to say in his letter that despite the disadvantageous regulatory and tax position in the United States, the maximum portion fo Intel's R&D and Intel chip manufacturing are based inside the United States. He added that this is the reason the company has supported the policies formulated by the Trump administration to make a level worldwide playing field. He claimed that the new administration will make American manufacturing competitive again through the use of new investment policies and regulatory standards.
The construction of the Fab 42 chip-making facility in Arizona was first announced in 2011. It was then a $5 billion project. The official opening of the facility was pushed back to 2014. Intel showed renewed interest in the facility after Trump promised fewer corporate regulations and lower taxes.
For Intel, this is a complete turnaround. The chip-maker shed thousands of jobs in 2016 due to difficulties present in PC industry. The company has earlier said that it will shed about 11 percent of its international workforce. The percentage comes to about 12,000 employees. Although the PC industry is dominated by Intel, its influence has greatly declined over the years. The Santa Clara, California headquartered company is highly reliant on the business generated from global data centers. Another rich vein of revenue comprise “Internet of Things”. This includes nearly everything- from self driving cars to factory automation and drones.