Intel Corp., during a visit by President Barack Obama, announced plans to build a $5 billion microprocessor plant in Arizona and hire 4,000 employees in the U.S. this year.
The workers will focus on product development, research and design, Chief Executive Officer Paul Otellini said, as he showed Obama around an Intel plant near Portland, Oregon. The new factory will be built at the company’s existing site in Chandler, Arizona.
Intel, the world’s largest chipmaker, is expanding its factory network to meet increasing demand for chips. The company said last month that it would spend $8.7 billion to $9.3 billion on plants and equipment this year, compared with $5.2 billion in 2010. Revenue may rise 14 percent to $49.5 billion this year, the average estimate of analysts surveyed by Bloomberg.
The company, which does manufacturing in Oregon, New Mexico and Arizona in the U.S. and Ireland, Israel and China internationally, has called on the government for tax breaks to make it cheaper to build facilities in the U.S.
Intel makes three-quarters of its products in the U.S. and gets three-quarters of its revenue from overseas, the company said. The new factory in Chandler will produce chips using so- called 14-nanometer production.
Nanometers, billionths of a meter, are used to measure the width of the microscopic circuits that make up chips. Shrinking those circuits makes chips more powerful or cheaper to produce.
Intel rose 17 cents to $22.14 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have climbed 5.3 percent this year.