Intel to invest $7 billion in new factory in Arizona, employ 3,000 people
The White House said there will be no incentives from the federal government for the Intel project.business Updated: Feb 09, 2017 09:49 IST
Intel CEO Brian Krzanich after meeting US President Donald Trump announced that the tech giant will invest $7 billion in a new factory employing up to 3,000 people.
The factory will be located in Chandler, Arizona, the company said.
Krzanich confirmed to CNBC News that the investment over the next three to four years would be to complete a previous plant, Fab 42, that was started and then left vacant.
The 7 nanometer chips to be produced there will be “the most powerful computer chips on the planet”, Krzanich said.
Most Intel manufacturing happens in the US, Krzanich said.
“America has a unique combination of talent, a vibrant business environment and access to global markets, which has enabled US companies like Intel to foster economic growth and innovation,” Krzanich said in a statement.
“Our factories support jobs - high-wage, high-tech manufacturing jobs - that are the economic engines of the states where they are located.”
Trump tweeted his thanks to Krzanich, calling the factory a great investment.
The announcement comes as the technology industry has pushed back against the Trump administration, amid mounting pressure to move manufacturing jobs back to the US.
However, the White House said there will be no incentives from the federal government for the Intel project.
Intel was one of more than 100 companies that joined together to file a legal brief opposing Trump’s temporary travel ban on people from seven Muslim-majority nations. Yet Intel, like Apple and other large technology companies, also supports the Trump administration’s plans to reduce corporate taxes and regulations.