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Intel to invest $7B in Arizona factory

Intel to invest $7B in Arizona factory

President Donald Trump looks at Intel CEO Brian Krzanich, holding a silicon wafer, during their meeting in the Oval Office of the White House in Washington, Wednesday, Feb. 8, 2017. The completion of the factory, Krzanich said, would create the advanced semi-conductor chips. Intel has 50,000 employees and supports almost half a million ancillary jobs in the U.S. The factory will produce "nanometer chips" according to Krzanich.

"This is great news", said Arizona Gov. Doug Ducey.

With the indirect impact, the company said an estimated 10,000 jobs would result from the factory. We've maintained this USA -based manufacturing even though approximately 80 percent of our product is sold outside the United States-we're one of the top 5 exporters and top 2 R&D spenders in the USA -and despite the fact that from a tax and regulatory position we have been disadvantaged relative to the rest of the world where we compete.

The announcement came in spite of a deepening rift between the new Trump administration and the tech sector over a White House order barring entry to refugees and nationals from seven Muslim-majority countries.

Intel is largest US high-technology capital expenditure investor ($5.1 billion in the USA 2015) and its third largest investor in global R&D ($12.1 billion in 20151). Intel announced Fab 42 in 2011 as part of a $5 billion investment plan that would mean 1,000 new jobs, but mothballed it in 2014 because of slumping chip demand. In response to a question from the press, he said Intel had decided to make its announcement in support of the administration's tax and regulatory policies that "really make it advantageous to do manufacturing in the U.S".

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One prominent Trump opponent expressed sympathy for Intel, but warned that a perceived alignment with the President could hurt the company's brand.

Intel, Coulter said, is in a "tricky" spot.

"Brian called a few weeks ago and said we want to do a very big announcement having to do with our country, but having to do mostly with Arizona and the jobs and the great technology that will be produced", the man said, as camera shutters snapped wildly a few feet away.

"We think we need to be part of the conversation on issues such as immigration ... and other policies that are essential to innovation".