Infineon to Expand in N.C., Move Workers Out of California

EE Times ^ | May 16, 2003 | Margaret Quan

[nwrep]

Infineon inks deal for North Carolina facility
By Margaret Quan, EE Times
May 16, 2003 (4:00 p.m. EST)
URL: http://www.theworkcircuit.com/story/OEG20030516S0044

MANHASSET, N.Y. — Infineon Technologies AG plans to expand its East Coast presence with the acquisition of a facility in North Carolina stemming from an investment deal that could provide $9.5 million over 11 years in exchange for 400 jobs.

Under terms of the deal, Infineon will take over an office complex in Cary, N.C., this fall to house research and development, human resource, IT, logistics, finance and administrative functions. It wil also invest $8 million in land, building, infrastructure and equipment by the end of 2004.

The company will move approximately 45 jobs from its U.S. headquarters in San Jose, Calif., and 70 research and development employees currently working for its memory products group in nearby Research Triangle Park. The remainder of the jobs will be created over the course of the deal and will pay an average salary of $75,000 per year.

In return, the state of North Carolina will forgive a percentage of the employee withholding tax totaling 65 percent of the total for each year. Under the agreement, 25 percent of that amount would be paid into a fund used to subsidize infrastructure improvements in the state's poor, rural counties.

The deal requires Infineon to create a minimum of specified job targets each year and retain those jobs over the course of 11 years. For instance, Infineon must add 66 out of 110 promised jobs by the end of 2003 to comply. By the end of the period, it must add a total of 320 jobs.

In a statement, the state Department of Commerce estimated the project could generate a "cumulative gross state product increase of about $620 million and a cumulative net state fiscal impact of $10.3 million over the life of the grant, as well as 668 jobs from all sources when the company reaches anticipated employment targets."

Miriam Martinez, Infineon Technologies North America vice president and chief financial officer, said the move to North Carolina is part of the parent company's previously announced 5-to-1 strategy to focus growth in the U.S., China and Japan.

The company has been restructuring since 2001, reshuffling its worldwide workforce and cutting costs on an ongoing basis. Infineon Technologies AG has also announced plans to establish a new worldwide headquarters outside of its current offices in Munich. Germany.

[MinuteGal]

No way, San Jose
Farewell, Gov. Grey
We're on our way
Hey, Hey, Hey!

Leni

[Gritty]

Just one more company Kalifornia won't have to kick around any more.

[gitmo]

In return, the state of North Carolina will forgive a percentage of the employee withholding tax totaling 65 percent of the total for each year.

Tax breaks grow the economy.

[Savage Beast]

You'll love it, Infeon! California is fabulous, but The South is even more fabulous--and without the problems!

[DeFault User]

Cary may well have the most expensive housing in North Carolina but it probably looks cheap by California standards.

[So Cal Rocket]

Will the last company to leave The People's Republic of Kalifornia please turn out the lights...

... on second thought... nevermind... the lights are already out.

[philetus]

They are probably cheering in Sacramento, because this gets them just that much closer to their true goal, a total welfare state.

[onedoug]

With whom to pay for it, once all the jobs are gone?

[philetus]

Who do you think?
The Federal government will be forced to take over California.

[LibKill]

North Carolina is a truly beautiful place. I lived there for a few years. To the east, the sea, to the west, mountains. In between, nice forests.

[2 Kool 2 Be 4-Gotten]

While this is good news for RTP NC, note that Infineon does not seem to be moving their headquarters East, just some operations and workers. Silicon Valley remains the center of most things tech, and that will probably continue.

[onedoug]

We can pray, one supposes, that if the communist now in office is recalled, that the Republicans will, for once, field a candidate who at least knows him/herself. That idiot Bill Simon evidently actually thinks he may be able to come swaggering back in.

[hnorris]

North Carolina is a great place to settle down and raise a family. And when the kids grow, there are inexpensive state universities all over the place. The winters are mild.

You'll like it here.

[wayoverontheright]

In return, the state of North Carolina will forgive a percentage of the employee withholding tax totaling 65 percent of the total for each year.

Tax cut for the rich!!