President Donald Trump said Thursday that his economic policies are responsible for Intel’s decision to start an idle computer chip factory in Arizona. The chipmaker, though, cited other factors when announcing its plans last week.
In a freewheeling news conference, Trump boasted of the nation’s improving economic fortunes under his administration, touting investment plans from Ford, Fiat Chrysler, General Motors and Walmart. He also cited Intel’s plans, announced last week when chief executive Brian Krzanich made a surprise visit to the White House.
“Intel just announced that it will move ahead with a new plant in Arizona that probably was never going to move ahead with,” Trump said Thursday. “And that will result in at least 10,000 American jobs.”
Intel did indeed say last week the factory, called Fab 42, could generate as many as 10,000 jobs. But most of those are indirect – the factory itself would only employ 3,000. Industry observers say those new jobs might be offset with cutbacks or closures at older Intel facilities in the U.S.
Trump and Intel disagree on the reasons for the company’s plan to open the factory, which has been on ice since construction wrapped up in 2013. Intel says it delayed opening Fab 42 because it didn’t need the additional manufacturing capacity. But it has always maintained it would require that space eventually.
“Since we deferred Fab 42, we’ve been consistently saying, ‘Yes, we will need Fab 42 for future space, capacity and for future technologies.’ Well, that time has come,” wrote Ann Kelleher, manager of Intel’s manufacturing group, in an editorial last week on the company’s website.
Intel declined to elaborate Thursday. It plans to start production at Fab 42 in 2020 or 2021 – possibly after Trump’s current term.
The chipmaker says Fab 42 will make the company’s 7-nanometer chip technology, two generations ahead of its current leading-edge processors. Intel will almost certainly develop that 7nm manufacturing process at its massive new D1X research factory in Hillsboro.
Industry observers believe the decision to open Fab 42 suggests Intel will use a new manufacturing technology, called extreme ultraviolet or EUV, to make its 7nm chips. EUV manufacturing tools are humongous, and Intel designed both D1X and Fab 42 to accommodate them.
In a letter to employees last week, Krzanich praised Trump administration policies for making U.S. manufacturing more competitive with “new regulatory standards and investment policies.” However, Intel CEO has been critical of the administration’s immigration policies.
— Mike Rogoway; twitter: @rogoway; 503-294-7699
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