{"id":65589,"date":"2017-02-08T21:09:42","date_gmt":"2017-02-09T01:09:42","guid":{"rendered":"https:\/\/stateofthenation2012.com\/?p=65589"},"modified":"2017-02-08T21:11:13","modified_gmt":"2017-02-09T01:11:13","slug":"intel-corp-announces-7-billion-investment-in-arizona-plant","status":"publish","type":"post","link":"https:\/\/stateofthenation2012.com\/?p=65589","title":{"rendered":"Intel Corp. Announces $7 Billion Investment in Arizona Plant"},"content":{"rendered":"<h2 class=\"sub-head\">Company says at a White House meeting that Chandler facility will employ 3,000<\/h2>\n<p><iframe loading=\"lazy\" src=\"http:\/\/video-api.wsj.com\/api-video\/player\/v3\/iframe.html?guid=E92297D4-C949-4767-BDF6-822D613AA15D&amp;shareDomain=null\" width=\"512\" height=\"288\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>By\u00a0JOHN D. MCKINNON, TED GREENWALD and REBECCA BALLHAUS<br \/>\nWall Street Journal<\/p>\n<p>WASHINGTON\u2014President Donald Trump and <a class=\"\" href=\"http:\/\/quotes.wsj.com\/INTC\">Intel<\/a><span class=\"company-name-type\"> Corp.<\/span> Chief Executive Brian Krzanich on Wednesday announced plans for a $7 billion investment in a major manufacturing facility in Arizona.<\/p>\n<p>The announcement was the latest in a series of events by Mr. Trump touting his<a class=\"icon none\" href=\"http:\/\/www.wsj.com\/articles\/the-trump-factor-in-companies-jobs-pledges-analyzing-the-numbers-1484863131\"> job-creation efforts<\/a>, and gave the president an opportunity to reframe his relationship with the high-tech sector after <a class=\"icon none\" href=\"http:\/\/www.wsj.com\/articles\/silicon-valley-faces-balancing-act-between-white-house-criticism-and-engagement-1485894819\">a round of criticism <\/a>from Silicon Valley over his recent immigration order.<\/p>\n<p>A White House official described the planned Intel facility as \u201cthe most advanced semiconductor facility in the world.\u201d It will provide 3,000 high-skill manufacturing jobs, officials said.<\/p>\n<p>Some chips that will be made there will be used in emerging technologies that Intel is seeking growth as its personal computer business matures. Those new areas include 5th generation or 5G networks and drones.<\/p>\n<p>\u201cThis will impact a wide spectrum of industries from automotive to health care,\u201d the White House official said.<\/p>\n<p>The plant is expected to be producing chips within three to four years and will take advantage of a next-generation manufacturing recipe that will etch even tinier transistors on a chip than Intel\u2019s latest process, which is due to be reach the market later this year, the company said.<\/p>\n<p>At his Oval Office meeting with Mr. Trump, Mr. Krzanich said Intel was encouraged by the administration\u2019s policies that will make the U.S. a more attractive place to do business.<\/p>\n<p>\u201cWe\u2019ve been working on this facility for several years,\u201d he said. \u201cWe actually held off on doing this investment until now\u2026It\u2019s really in support of tax and regulatory policies that we see the administration pushing forward that really make it advantageous to do manufacturing in the U.S.\u201d<\/p>\n<p>Mr. Trump and his aides often say they are focused on <a class=\"icon none\" href=\"http:\/\/www.wsj.com\/articles\/what-president-donald-trump-canand-cantdo-for-wall-street-1486144134\">reducing the cost of doing business<\/a> in the U.S. by easing regulatory and other burdens.<\/p>\n<div id=\"unruly\" class=\"wsj-body-ad-placement\">\n<div class=\"wsj-body-ad \">\n<div id=\"wsj-body-AD_G3\" class=\"wsj-responsive-ad-wrap wsj-ad-article-body\" data-ad-options=\"{&quot;adId&quot;:&quot;AD_G&quot;,&quot;adUnitPath&quot;:&quot;\/2\/interactive.wsj.com\/news_story&quot;,&quot;adSize&quot;:[[2,2]],&quot;adSizeMap&quot;:null,&quot;autoRefresh&quot;:false,&quot;adTargeting&quot;:{&quot;metazone&quot;:null,&quot;msrc&quot;:null,&quot;circ&quot;:&quot;fullarticle&quot;,&quot;bkuuid&quot;:&quot;\/e0g\/hys999+g8br&quot;,&quot;p39&quot;:null},&quot;disableRefresh&quot;:false}\" data-tracking=\"interactive.wsj.com\/news_story\" data-google-query-id=\"CN61htDpgdICFdIUgQodHzUCLg\">\n<div id=\"google_ads_iframe_\/2\/interactive.wsj.com\/news_story_3__container__\"><iframe id=\"google_ads_iframe_\/2\/interactive.wsj.com\/news_story_3\" title=\"3rd party ad content\" name=\"google_ads_iframe_\/2\/interactive.wsj.com\/news_story_3\" width=\"2\" height=\"2\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Mr. Trump called the investment \u201ca great thing for Arizona.<\/p>\n<p>\u201cWe\u2019re very happy and I can tell you the people of Arizona are very happy,\u201d he said. \u201cIt\u2019s a lot of jobs.\u201d<\/p>\n<p>\u201cWe\u2019ve been in the planning phase for this factory for quite a while. We\u2019ve been watching it\u2014when do we have to start it\u2014I\u2019d say, for at least a year, and we\u2019re now to the point where we\u2019re going to have to start this year doing some of the facility work,\u201d said Stacy Smith, Intel\u2019s executive vice president in charge of manufacturing, operations and sales.<\/p>\n<p>Intel\u2019s new plans involve opening a manufacturing plant at an existing facility in the Phoenix area. The factory, known as Fab 42, was largely completed several years ago but never put in service, executives said. That facility drew praise from then-President Barack Obama in 2012 for its potential to bring more manufacturing jobs to the U.S. But the company announced in 2014 <a class=\"icon none\" href=\"http:\/\/blogs.wsj.com\/digits\/2014\/01\/14\/intel-arizona-plant-to-remain-idle\/\">the plant wouldn\u2019t be opening <\/a>after all amid changing market conditions.<\/p>\n<p>Since then, Intel had already started increasing its overall investment again. The Santa Clara, Calif., company said in January its capital spending jumped more than 31% to $9.6 billion last year, and it plans to increase that again to around $12 billion this year, as it shifts to producing more advance chips.<\/p>\n<p>Wednesday\u2019s announcement is the latest in a series of events by Mr. Trump aimed at highlighting his administration\u2019s efforts to boost job creation, particularly in manufacturing. Mr. Krzanich recently was named a member of Mr. Trump\u2019s manufacturing jobs initiative.<\/p>\n<p>The event also offered an opportunity for the president to try to improve relations with the high tech industry, after the criticism he received from numerous Silicon Valley companies over his recent executive order on immigration.<\/p>\n<p>\u201cI think this shows the kind of partnership the president envisions having with major companies and startups alike that populate places like Silicon Valley,\u201d the White House official said.<\/p>\n<p>Intel already does much of its advanced wafer fabrication\u2014the process of etching microscopic circuits onto the silicon wafers that are turned into computer chips\u2014in the U.S., although it also has built such plants in Ireland, Israel and China. Wednesday\u2019s announcement gave Intel officials a chance to highlight the company\u2019s still-substantial U.S. manufacturing presence, and its plans for future growth.<\/p>\n<p>\u201cIntel is very proud of the fact that a majority of our manufacturing is here in the U.S., and the majority of our research and development is here in the U.S., while over 80% of what we sell is sold outside of the U.S.,\u201d Mr. Krzanich said. Asked whether Intel would bring back jobs from overseas, he said the investment \u201cis actually about expansion, this is about growth.\u201d<\/p>\n<p>Intel announced in April 2016<a class=\"icon none\" href=\"http:\/\/www.wsj.com\/articles\/intel-to-cut-12-000-jobs-1461097009\"> a plan to cut 12,000 jobs<\/a>, amounting to 11% of its workforce, part of a restructuring plan to cut costs and free up capital to invest in building markets that promise faster growth than its traditional strongholds in PCs and servers. The restructuring generated a $2.3 billion charge the company expects to pay off by mid-2017.<\/p>\n<p>The addition of 3,000 high-wage, high-skill jobs to Intel\u2019s workforce is \u201cconsistent\u201d with the company\u2019s restructuring plan announced in April 2016, said Mr. Smith.<\/p>\n<p>In addition to the 3,000 jobs, the revived Fab 42 is likely to generate an estimated 7,000 further jobs to support the plant, Mr. Smith said. Those support positions include technicians who aren\u2019t employed by Intel but work on-site to help keep the equipment running at top performance, as well as security and other site functions. Those jobs would phase in as construction is completed and the facility begins producing chips in three to four years, Mr. Smith said.<\/p>\n<p>He estimated that construction would employ 3,000 people over the next three to four years to complete the facility and install the necessary manufacturing equipment.<\/p>\n<p>___<br \/>\n<a href=\"http:\/\/www.wsj.com\/articles\/intel-corp-announces-7-billion-investment-in-arizona-plant-1486578589\">http:\/\/www.wsj.com\/articles\/intel-corp-announces-7-billion-investment-in-arizona-plant-1486578589<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Company says at a White House meeting that Chandler facility will employ 3,000 By\u00a0JOHN D. MCKINNON, TED GREENWALD and REBECCA BALLHAUS Wall Street Journal WASHINGTON\u2014President Donald Trump and Intel Corp. Chief Executive Brian Krzanich on Wednesday announced plans for a &hellip; <a href=\"https:\/\/stateofthenation2012.com\/?p=65589\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-65589","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts\/65589","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=65589"}],"version-history":[{"count":0,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts\/65589\/revisions"}],"wp:attachment":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=65589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=65589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=65589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}