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.