The Economy

Intel to Upgrade its U.S. Manufacturing Infrastructure

Oct. 19, 2010

Multibillion-dollar investment will include construction of a new fabrication plant in Oregon.

Santa Clara, Calif.-based Intel Corp. said it will invest between $6 billion and $8 billion on its U.S. manufacturing infrastructure, creating up to 1,000 new permanent jobs.

The investment will fund deployment of Intel's next-generation 22-nanometer manufacturing process across several existing U.S. factories, along with construction of a new development fabrication plant (commonly called a "fab") in Oregon.

The projects will support 6,000 to 8,000 construction jobs and create 800 to 1,000 new permanent high-tech jobs, according to the company.

"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," said Intel President and CEO Paul Otellini. "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."

Upgrades Will Support 'Continued Growth of the PC Market'

The upgraded fabs will add capacity to support "the continued growth of the PC market segment and additional computing markets Intel is addressing, such as mobile and embedded computing," according to the company.

Intel's new development fab in Oregon-to be called "D1X"-is scheduled for R&D startup in 2013.

Upgrades also are planned for a total of four existing factories in Arizona (known as Fab 12 and Fab 32) and Oregon (known as D1C and D1D).

"Intel makes approximately 10 billion transistors per second. Our factories produce the most advanced computer technology in the world and these investments will create capacity for innovation we haven't yet imagined," said Brian Krzanich, senior vice president and general manager of Intel's manufacturing and supply chain. "Intel and the world of technology lie at the heart of this future. Contrary to conventional wisdom, we can retain a vibrant manufacturing economy here in the United States by focusing on the industries of the future."

While Intel generates approximately three-fourths of its revenues overseas, it maintains three-fourths of its microprocessor manufacturing in the United States, according to the company.

About the Author

Josh Cable | Former Senior Editor

Former Senior Editor Josh Cable covered innovation issues -- including trends and best practices in R&D, process improvement and product development. He also reported on the best practices of the most successful companies and executives in the world of transportation manufacturing, which encompasses the aerospace, automotive, rail and shipbuilding sectors.

Josh also led the IndustryWeek Manufacturing Hall of Fame, IW’s annual tribute to the most influential executives and thought leaders in U.S. manufacturing history.

Before joining IndustryWeek, Josh was the editor-in-chief of Penton Media’s Government Product News and Government Procurement. He also was an award-winning beat reporter for several small newspapers in Northeast Ohio.

Josh received his BFA in creative writing from Bowling Green University, and continued his professional development through course-work at Ohio University and Cuyahoga Community College.

A lifelong resident of the Buckeye State, Josh currently lives in the Tremont neighborhood of Cleveland. When the weather cooperates, you’ll find him riding his bike to work, exercising his green thumb in the backyard or playing ultimate Frisbee.