Intel may invest $8bn on factories

INTEL IS to invest $6 – $8 billion on expanding and upgrading its US factories in Oregon and Arizona to produce its next-generation…

INTEL IS to invest $6 – $8 billion on expanding and upgrading its US factories in Oregon and Arizona to produce its next-generation of computer chips and research new technology.

Two factories in Oregon and two in Arizona are being upgraded to manufacture chips using 22-nanometer technology.

Intel had four factories, or Fabs, globally to build its current generation of 32-nanometer technology.

Yesterday’s announcement is seen as a commitment to the US by one of the country’s high-tech manufacturers.

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It is unclear what the decision will mean for new investment at Intel’s operations in Leixlip, Co Kildare which employs about 4,000 staff.

Earlier this month, the Israeli finance ministry made an offer to Intel of about €135 million in grant aid if it located next generation manufacturing in that country.

Intel’s only factories outside the US are in Israel and Ireland.

A plant is to open in China at the end of the month, but this will not build the latest generations of microprocessors.

The US investment by Intel will support 6,000 – 8,000 construction jobs to build the new facilities and the chip maker expects to add an additional 800 – 1,000 permanent staff when they are completed.

An older factory on Intel’s Leixlip campus has been renovated recently to prepare it for possible future investments.

If Intel does not locate a 22-nanometer line in Ireland, it is possible it may decide to produce the less strategic chipsets needed to run the new chips in Leixlip.