When I talk with people about working at Intel and our efforts on corporate responsibility, one of the things that people seem most surprised to learn is where we manufacture our products. While we do have factories overseas, three-fourths of our microprocessor manufacturing is actually still done here in the U.S. You might wonder what makes it possible to invest billions in manufacturing in communities like Chandler, Arizona and Hillsboro, Oregon. The answer rests in our partnerships with state and local governments that recognize the value of these investments and their economic impact.Last year Intel CEO Paul Otellini announced a new round of capital investments in Intel’s American factories totaling $7 billion in 2009 and 2010, primarily to support Intel’s current state-of-the art manufacturing process, known as 32nm. In February of this year, Intel announced the new “Invest in America Alliance” initiative, which included a commitment of $200 million in a new Invest in America Technology Fund. We also joined with 17 other corporate leaders to increase hiring of recent college graduates (projected to lead to at least 10,500 new jobs collectively across the companies by the end of 2010.) These upgrades have been completed and today, our CEO announced the next wave of investment – between $6 billion to $8 billion on the next-generation manufacturing technology in Intel’s U.S. facilities over the next several years. The investment will include a new development fab in Oregon, and four other U.S. fabs (Fab 12 and Fab 32 in Arizona and D1C and D1D in Oregon) will be upgraded to 22nm production capability. This commitment signals our confidence in future growth and potential of PC market segment and opportunities for Intel in new markets. As with the 2009-2010 investments, these newly announced investments will produce the latest generation of cutting-edge semiconductor manufacturing technology supporting the kind of high-wage, high-value, high-tech jobs that are the economic engines of the states where they are located. Specifically, the new investments will support approximately 6,000-8,000 U.S. construction jobs over the next several years and between 800-1,000 permanent Intel technically skilled high-wage jobs. It will also help Intel to maintain its current manufacturing base at these U.S. sites. Microprocessors are among the most complex devices ever created. Enormous investments in technological innovation and capital spending go into creating a modern microprocessor fabrication facility. We weigh many factors when making investment decisions and there are strong incentives for expanding globally. Today’s announcement recognizes the states where our manufacturing sites are located in the U.S. continue to be great partners in driving investment in innovation, as they have implemented policies to encourage capital investment and reward investments and job creation. Their commitment to innovation makes today’s good news possible and we are very excited about what it means for our company and the local communities where we operate.
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