Intel Earmarks $8B for Manufacturing

By Cindy Waxer October 20, 2010

Bolstering its reputation as the world’s largest manufacturer of microprocessors, Intel Corp., announced that it will invest between $6 billion and $8 billion on future generations of manufacturing technology in its American facilities. The projects, which include the construction of a new development fabrication plant in Oregon, will support 6,000 to 8,000 construction jobs and result in 800 to 1,000 new permanent high-tech jobs.

“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, in a statement. “The most immediate impact of our multi-billion-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.”

Intel’s brand-new development fab in Oregon, to be called “D1X,” is scheduled for R&D startup in 2013. Upgrades are also planned for a total of four existing factories in Arizona (known as Fab 12 and Fab 32) and Oregon (known as D1C and D1D). The investment is aimed at supporting the company’s transition to 22-nanometer manufacturing technology.

Intel can afford to invest billions in new-generation technology. Earlier this month, Big Blue revealed that third-quarter revenue exceeded $11 billion for the first time, up 18 percent year-over-year to $11.1 billion. The company also reported operating income of $4.1 billion, net income of $3 billion and EPS of 52 cents. Intel is predicting a stronger-than-expected fourth-quarter too and is forecasting a December quarter gross margin of 67 percent.

Intel’s results topped analysts’ expectations and are a positive sign that sales of PC computers should remain steady throughout the holiday shopping season and that any loss in personal computer sales could be compensated by spending on servers or data centers.




Edited by Jaclyn Allard

TechZone360 Contributing Editor

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