UPDATE: Intel To Invest $7 Billion In U.S. Facilities

CNNMoney.com ^ | 2/10/2009

[Arguendo]

SAN FRANCISCO (Dow Jones) -- Semiconductor maker Intel Corp. said Tuesday that it plans to spend $7 billion over the next two years to build advanced manufacturing facilities in the U.S., a major capital investment at a time of uncertainty in the chip industry.

Intel shares rose briefly Tuesday on the announcement, but were down 3.5% at last check.

The announcement comes just a few weeks after Intel announced that it was closing five facilities worldwide, and mounting concerns of declining demand in the industry. The move could also be good news for makers of chip manufacturing tools, which have been reeling from a dramatic drop in demand in the semiconductor industry.

[Arguendo]

What?! New investment in the US? Impossible, since free trade only harms America and sends our jobs overseas.

[KevinDavis]

I thought all manufacturing jobs was overseas??

[Shermy]

Is there one company (other than two car cos.) that can’t normally borrow money now? “Credit crisis?

Obama, Geither, Paulson, it’s all about bailing out the derivatives and the Wall Street banks and investors who played most with them.

It’s obvious. For one, TV is full of ads talking about easy car loans. Yet in past days Geithner has not been shy to imply that such loaning doesn’t exist, and only will, if taxpayer money is used to buy up car loan derivatives.

[Arguendo]

To be fair, Intel has about $12 billion in cash on hand, so I don’t think they need to borrow for this project.

But you’re right, banks are businesses in the business of lending money, and they haven’t ceased to do this just because the markets are tightening up. It might be a little harder to qualify for a loan (which isn’t entirely a bad thing), but except for a short period last year when some banks were worried about their day-to-day cash levels they haven’t ceased lending entirely.

[Shermy]

Thank you for the info.

Geitner is making this clear it’s about the “secondary lending” market. IOW, the derivative boys.

“The financial system is central to this process, transforming the earnings and savings of American workers into the loans that finance a first home, a new car or a college education, the credit necessary to build a company around a new idea.”

Geithner is a complete liar in his implication that this loaning would not occur without derivative trading. This is a bailout of Wall Street finance and their investors, pure and simple.

[what's up]

Sounds like good news to me.

I bought an Intel July option before the close of market when I saw this headline on Yahoo.

[ShadowAce]

[greyfoxx39]

Good news for New Mexico

 

Intel's Upgrade Plans Include $2.5 Billion in Rio Rancho

By Deborah Baker
Associated Press

February 10, 2009 

      SANTA FE — Intel Corp.'s plans to spend $7 billion upgrading its U.S. factories over the next two years includes a $2.5 billion investment in its Rio Rancho facility, officials said today.
    Retooling the Fab 11X plant will mean up to 1,500 jobs lasting about 18 months for technicians and construction workers, according to Tim Hendry, the plant's manager and vice president of the Intel Technology Manufacturing Group.
    It's "like a stimulus package," Gov. Bill Richardson said at a news conference to announce the investment.

 

-SNIP-

 It follows on the heels of a 2007 upgrade that included a $2 billion investment in the Rio Rancho plant just north of Albuquerque.

 

Also, January 8, 2009

Hewlett-Packard Co. broke ground Wednesday on its new technical support and customer service facility in Rio Rancho.

The three-story building, near the planned downtown of Rio Rancho, will be 218,000 square feet in size and will employ at least 1,350 fulltime employees by the end of 2012.

NM Ping

If you want on or off the NM Ping list, please FReepmail me.

Access to the ping list is available to anyone by going to my FR home page.

[TheCause]

Skynet!

[shove_it]

Thanks for the ping. I have a lot for sale in Rio Rancho.

[greyfoxx39]

We live near the new city center and things are really starting to build up out here.

[AdmSmith]

This one http://www.skynet.be

or this http://www.skynet.com

[AdmSmith]

Good news !

They are betting that the zero interest rate and coming depreciation will make their (and our) day.

[Disambiguator]

Hooray for Rio Rancho! Too bad about another call center. Ick.

Of course, I was involved in the whole Intuit thing in Rio Rancho back in the 90’s, so I’ve sworn off call centers for life.

[greyfoxx39]

Well, it’s jobs and tax base, etc, etc.

[Tribune7]

What for? Let Obama have us do it /s.

[Gondring]

In a speech before the Economic Club of Washington, D.C., Otellini also underscored the need for tech companies to invest in the United States. He quoted former Intel CEO Andy Grove who said, "bad companies are destroyed by crisis. Good companies survive them. Great companies are improved by them."

Otellini called the current crisis the worst he has seen since he began at Intel about 35 years ago, adding, "For nations like the U.S., absolutely nothing about the future is inevitable or guaranteed -- not jobs, not leadership, not our standard of living."

WHAT?!?!

But I thought that every American has a birthright to wages far above those people who chose to be born in those other countries, and is entitled to better work conditions, too! (At least, that's what many FReepers seem to believe!)

Analyst Roger Kay of Endpoint Technologies Associates echoed this view saying, "This announcement is aimed at Washington. Intel is saying, 'Yes, it has mothballed some plants to reduce fixed costs, but a chunk of its new investment will be made in the United States.' It's show of good citizenship."

Hmmm...

[NRA2BFree]

Thanks for all the pings! :o) Are you back home yet? This is really good news for NM!

[TheCause]

This one Adam Smith:
http://www.youtube.com/watch?v=YLQlUGorwVA

[greyfoxx39]

Thanks for all the pings! :o) Are you back home yet? This is really good news for NM!

You're welcome...I returned home a month ago.