Intel Corp. Announces $7 Billion Investment in Arizona Plant

By John D. McKinnon and Ted Greenwald 

WASHINGTON -- President Donald Trump and Intel Corp. Chief Executive Brian Krzanich announced plans for a major manufacturing facility in Arizona Wednesday.

A White House official, citing information from Intel, described the planned facility as "the most advanced semiconductor facility in the world." It will employ 3,000 people, officials said.

Some chips that will be made there will be used in emerging technologies where Intel is seeking growth as its personal-computer business matures. Those new areas include 5th generation or 5G networks as well as drones.

"This will impact a wide spectrum of industries from automotive to health care," the White House official said.

Intel's plans involve opening a manufacturing plant in Chandler known as Fab 42 that was largely completed several years ago but never put in service, the official said. That facility drew praise from then-President Barack Obama in 2012 for its potential to bring more manufacturing jobs to the U.S. But the company announced in 2014 that plans had changed and the plant wouldn't be opening after all, amid changing market conditions.

It wasn't immediately clear what role the Trump administration might be playing in facilitating the plant's opening. Mr. Trump and his aides talk often about reducing the cost of doing business in the U.S. by easing regulatory and other burdens. The official said Wednesday Intel officials are expected to emphasize the administration's tax and regulatory overhaul agenda.

The announcement is the latest in a series of events by Mr. Trump aimed at highlighting his administration's efforts to boost job creation, particularly in manufacturing.

It also might offer an opportunity for the president to try to reset his relationship with the high tech industry, after the criticism he received from many Silicon Valley companies over his recent executive order on immigration.

"I think this shows the kind of partnership the president envisions having with major companies and startups alike that populate places like Silicon Valley," the official said.

Write to John D. McKinnon at [e-mail] and Ted Greenwald at [e-mail]

(END) Dow Jones Newswires

February 08, 2017 13:44 ET (18:44 GMT)

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