Alongside Trump, Intel Reannounces Arizona Factory

Samuel SharpFeb 09, 2017

Intel said Wednesday it plans to invest $7 billion in the construction of its R&D factory in Arizona where it will produce its new 7 nanometer semiconductors.

"The completion of Fab 42 in 3 to 4 years will directly create approximately 3,000 high-tech, high-wage Intel jobs for process engineers, equipment technicians, and facilities-support engineers and technicians who will work at the site".

President Donald Trump will meet with Intel Corp (INTC.O) chief executive Brian Krzanich on Wednesday afternoon, the White House said, offering no further details.

Asked if the decision came in response to the new president's actions, he said, "It's really in support of the tax and regulatory policies that we see the administration pushing forward that really make it advantageous to do manufacturing in the USA".

Intel regularly establishes new factories to create smaller, powerful and more power-efficient chips. "We believe that we must be part of the conversation to voice our views on key issues such as immigration, H1B visas and other policies that are essential to innovation". Now it's back on with a $7 billion plan that will mean 3,000 jobs in three or four years, Intel said.

Trump called the announcement a "great thing" for Arizona.

Intel, Coulter said, is in a "tricky" spot.

The email also touts Intel's track record of being one of the top two R&D spenders and top five exporters in the USA, despite facing certain tax and regulatory hurdles that make Intel "disadvantaged relative to the rest of the world where we compete".

Intel's Chandler, Arizona investments began in 1996.

"As a company cofounded by an immigrant, we support lawful immigration", Krzanich wrote in a tweet after Trump's executive order imposing a travel ban on seven Muslim-majority countries.

Intel's stock rose after the announcement but pared gains before the market closed. The company added that the new plant would also help local businesses and fuel long-term job opportunities in the region. The chipmaker's CEO Brian Krzanich announced his company's newest initiative in a tasteful if traditional space with lavish gold curtains and a stately desk.

In an email to Intel employees, Krzanich explained the company's rationale for the Chandler factory investment.

Outside the U.S., Intel also operates factories in China, Vietnam, Malaysia, Israel, and Ireland.

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