[Global Technology Reporter Zhang Zhiying] After Trump's policy actions were repeated and the successors of Jung Sun and Gou Ming invested in the United States, Intel also announced that it had invested in the construction of a plant in the United States. Is Intel simply creating American jobs? But before it had just laid off 12,000 people. Why did Intel announce a plant in the United States? What did it consider?
Trump once criticized some U.S. technology companies for shifting their manufacturing operations overseas, reducing U.S. jobs. Although Trump’s main target of criticism was Apple, who did not name the company, but Intel still joined the ranks of creating the United States for employment.
Intel CEO Brian Krzanich and U.S. President Trump held talks on Wednesday. Then Intel announced that it will invest 7 billion U.S. dollars in the next three to four years to build a semiconductor factory to produce advanced seven-nanometer chips. The new plant will be located in Chandler, Arizona.
When the factory is completed and begins operations, it will create 3,000 jobs, and participating in the construction will create more than 10,000 job opportunities. Trump praised Intel’s investment decision. He said: “We are very happy. I can tell you that people in Arizona are very happy.â€
Businesses work hard to adapt to the new government that is "clear to the public"
Although the White House stated that it would not provide Intel with an incentive plan, Keczy was announcing this investment to reporters in the presence of President Trump, in order to show his support for the "new government-promoted taxation and regulatory policies." Foreign media believes that this shows that U.S. companies are trying to adapt to the new government, which is "clever and clear."
Under the policy of the new government, many telecommunication companies and Internet companies in the technology industry have announced plans to invest in the United States. In addition, overseas companies such as Alibaba, Softbank, and Foxconn also announced plans for investment and job creation.
"Let jobs go home" is the slogan that the new US President Trump has always called for. After officially taking office as President of the United States on January 20th, he began to practice his promise during the election campaign that he would promote the company to leave his job in the United States and create new jobs instead of transferring his work abroad.
Trump emphasized the employment of Americans, the purchase of American goods, and pressured many companies to build factories in the United States and hire more American workers. Trump said that if U.S. companies go to Mexico to make products and then import them into the United States, the U.S. government will impose high border taxes.
Intel just laid off 12,000 people thinking about it?
Although Intel advertised itself as the creator of a job, it is ironic that last year the company reorganized its business and has just cut 12,000 employees.
Keziqi boasts that he is very proud that most of Intel's manufacturing industry is in the United States, R&D is also in the United States, and 80% of the products are sold overseas. It is reported that most of Intel's chips are produced in the United States, Oregon, Arizona and New Mexico factory, in Ireland, Israel and China also have factories in China, Malaysia and Vietnam there are testing and assembly plants. Most chip design work is done in Israel. In addition, it is currently producing flash memory chips in Dalian, China. It can be seen that setting up a plant in the United States is a matter of time for Intel.
And we know that building a factory in Lisóna is not really a new plan. It just stops the project that was stopped before. The original plant, codenamed Fab 42, is expected to invest 5 billion US dollars in 2011, producing 14-nanometer chips. However, since the semiconductor industry began to shift from PCs to mobile devices such as mobile phones, PC sales have been declining since then, Intel has shelved the plan.
An Intel spokesperson said that the decision to make a reinvestment decision today is based on Intel’s business growth. Today, Intel decided to use this factory to produce chips for IoT devices, servers, automotive electronics and other fields, reducing its dependence on the declining PC market.
All in all, although Intel reopened the $7 billion factory-opening plan, it also reactivated the idle factory to some extent. Moreover, Intel is not only a chip factory located in the United States, and the preparation of various raw materials, manpower, logistics, supply chain and other resources is already complete. The additional business also has the need for expansion. It is hoped that the IoT trend will be pursued and 7-nanometer chips will be developed. How can you take advantage of Trump's free ride and help Trump sell his face and increase the relationship with the government?
Although the White House stated that it has no incentive for Intel, it is not known whether Intel can obtain tax concessions. In addition to being close to the U.S. market, Apple is now releasing a single quantity for Intel. In the United States, where the logistics costs are low, it is expected that there will be more opportunities to provide Apple and other large companies with the opportunity to enjoy the benefits. However, it is worth noting whether other technology companies will follow suit in the future and then cause more chain effects.
In the end, Trump signed an executive order and imposed a temporary travel ban on people from seven Muslim countries. Intel is one of more than 100 companies that have united to oppose the ban. Although the White House said that the meeting did not mention the above issues, but Trump moves frequently, the interaction between the new government and technology companies is also the future need to continue to focus on the direction.
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