Intel to Invest Up to $8 Billion in U.S.-Based Fab Plants

By Chris Preimesberger  |  Posted 2010-10-19 Print this article Print

Intel said the five fab projects will require between 6,000 and 8,000 construction jobs and result in between 800 and 1,000 new permanent high-tech jobs.

Intel revealed Oct. 19 that it is planning to invest between $6 billion and $8 billion over the next two years to build a new processor fabrication plant in Oregon in addition to upgrading four existing facilities to manufacture next-generation 22-nanometer chips.

These upcoming 22nm microprocessors are designed for use in smartphones, digital cameras, desktop and laptop computers, and numerous other devices. Their small size and increased performance metrics allow designers and device manufacturers additional flexibility to turn out sleeker designs, higher performance and longer battery life.

Intel said the five projects will require between 6,000 and 8,000 construction jobs and result in between 800 and 1,000 new permanent high-tech jobs.

Even though Intel generates 75 percent of its revenues from overseas-based manufacturers, it maintains about three-fourths of its microprocessor manufacturing in the United States. Intel also said the planned investments allow the company to maintain its existing manufacturing employment base at the five sites.

"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," Intel President and CEO Paul Otellini said in a statement to the press. 

"The most immediate impact of our multibillion-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 planned capital expenditures come in the wake of Intel's announcement made in February 2009 to support state-of-the-art upgrades to its manufacturing process in the United States. Those upgrades resulted in 32nm process technology which produced computer chips being used today in PCs, servers, embedded and mobile devices around the world.

Intel said it will start production in late 2011 on its first 22nm microprocessors, which are codenamed Ivy Bridge.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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