Intel To Invest In Manufacturing Plants In The U.S.

Intel on Tuesday said it plans to invest between $6 billion and $8 billion in fabrication plants in Oregon and Arizona which will specialize in small chips for embedded devices, including tablets.

The Santa Clara, Ca.-based chip maker said the large-scale manufacturing project will create between 6,000 and 8,000 construction jobs and 800 to 1000 high-tech jobs in each region. Some of that money will also go to helping to maintain existing manufacturing jobs and facilities in the midst of a difficult economic climate, according to Intel.

A new facility in Oregon and four other existing facilities, two in Oregon and two in Arizona, will develop 22-nanometer process technology for future Intel processors. Intel is relying on the smaller chips to develop faster, power-efficient processing while reducing the risk of overheating. ’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,’ Intel President and CEO Paul Otellini said in a statement. ’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.’

Intel also promises improvements in the design of devices with 22-nanometer chips inside them, as well as lower costs and longer battery life.

Next: A Leaked Internal E-Mail From Paul Otellini

Intel says the "sleeker" form factor it is seeking for the 22-nanometer chips is indicative of its long-term interest in embedded devices. After acquiring Infineon Wireless Solutions in August and announcing its plans for context-aware devices at the annual Intel Developer Forum in September, Intel's plans to eventually lead in the tablet space were revealed last week in a leaked internal e-mail from CEO Paul Otellini.

Today's announcement of the chip maker's manufacturing plans follows a similar investment of $7 billion from Intel two years ago aimed at developing 32-nanometer process technology. At the time, Otellini said the company was committed to investing in manufacturing in the U.S. despite the recession, and even went so far as to openly urge other companies to do the same.

Nevertheless, Intel does have some factories overseas, in Ireland and Israel. According to The New York Times, the company also has plans to build a $ 2.5 billion manufacturing plant in China.