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Intel’s Impacts on the US Economy

Daniel Nenni

Admin
Staff member
Today, Intel is releasing a third-party report titled “Intel’s Impacts on the US Economy.” The report estimates the economic impact of Intel on the U.S. economy and the states where Intel has its largest U.S. presence: Arizona, California, New Mexico and Oregon. The impact is defined in terms of employment, labor income and gross domestic product using data from fiscal year 2019.

Intel CEO Pat Gelsinger offers this introduction to the report:

Since its founding, Intel has been at the forefront of innovation in the United States. As the largest U.S.-owned semiconductor manufacturer, Intel is the only leading-edge U.S. semiconductor company that both develops and fabricates its own technology.

We are also the only company that has built leading edge fabs in the U.S. during the last five years. Unlike many companies, Intel’s intellectual property still resides here at home. We are making significant investments in U.S. manufacturing and R&D over the next several years. And Intel’s technology is helping the U.S. to build better by supporting the development of smart infrastructure to address the nation’s economic and security needs.

We celebrate our American origins and the important role we play as a global technology leader. In that spirit, I am pleased to share with you this report detailing the scope and scale of Intel’s economic impact and investment in the U.S. Intel’s economic contributions extend nationwide and throughout all sectors of the economy. Some highlights:

  • We employ approximately 52,000 people across the country.

  • Each job at Intel is estimated to support 13 other jobs elsewhere, meaning Intel directly or indirectly supported more than 700,000 full-time and part-time jobs in the U.S.
  • Intel directly contributed $25.9 billion to U.S. GDP in 2019.

  • Our total direct and indirect GDP impact on the U.S. economy, $102.0 billion in 2019, accounted for one half of 1 percent of U.S. GDP.
There is much more in the full report.

While I am proud of the role Intel plays in fueling U.S. economic growth and development, I know there is more we can do.

The entire world is becoming digital, driven by four superpowers: the cloud, connectivity, artificial intelligence and the intelligent edge. In this landscape of rapid digital disruption – which has been accelerated even more by the global pandemic – the technology and products Intel develops and manufactures are more critical than ever.
Intel has always been defined by its ambition and faith in the power of technology to help humankind and by its relentless pursuit of excellence. We are committed to doing our part to ensure the U.S. continues to be the leader in semiconductor manufacturing.

As we continue to invest in and strengthen the U.S. economy, I know Intel’s best days are ahead of us.

I hope you enjoy the report.


Pat Gelsinger
CEO, Intel
 

tooLongInEDA

New member
I'm not by instinct a huge fan of very big, powerful companies. But some credit where it's due here. Intel does (as far as I can tell) pay its fair share of taxes in the US. I hope Pat's also made that point.

A thought struck me here - is it just coincidence that the older "hardware" (or "hardware era") companies like Intel do the right thing here, while very recent web/software companies (and in several other sectors) exploit every dodge in the book to avoid paying US taxes (disclosure here, I'm not a US resident so I have no interest here) ?
 

Portland

Active member
Intel demands tax breaks every place they move into.

Intel spending their energy on third party reports for taxpayer dollars and not producing a "competitive product" says something. Their 10 nm products are competitive but can't make them in the needed yields?
 
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Andy1299

New member
I'm not by instinct a huge fan of very big, powerful companies. But some credit where it's due here. Intel does (as far as I can tell) pay its fair share of taxes in the US. I hope Pat's also made that point.

A thought struck me here - is it just coincidence that the older "hardware" (or "hardware era") companies like Intel do the right thing here, while very recent web/software companies (and in several other sectors) exploit every dodge in the book to avoid paying US taxes (disclosure here, I'm not a US resident so I have no interest here) ?
Intel has very aggressive tax planning activities. The difference is in the physical portability/ fungibilityof HW vs. SW and that a lot of SW companies are in growth mode with high revenue and less earnings. Intel has been caught doing the wrong thing a number of times. Interestingly Intel already custom builds a lot of x86 chips so you could cynically take the view that IDM 2.0 is a way to look more like a foundry for public dollars...
 

Andy1299

New member
Intel demands tax breaks every place they move into.

Intel spending their energy on third party reports for taxpayer dollars and not producing a "competitive product" says something. Their 10 nm products are competitive but can't make them in the needed yields?
The fact that their 10th and 11th gen line ups contain 14nm and 10nm product supports that
 

Andy1299

New member
I think the silence is just that it’s not a financial focused blog (although I like that kind of thing). Agree on your point CPG results aren’t great when pc market itself is up 30%+ and DCG reeks of increased competitive pressure. Although part of the ASP decline is just that most are buying comet lake Xeons and they want a discount after 3 years and enterprises moving from 5-7 year refresh cycles to 3-5 year cycles because they got burned with all the skylake security issues...
 

Portland

Active member
When apple teamed up with tsmc it was the beginning of the end for Intel. They need to reinvent themselves. Record laptops sales and still a decline when investors demand growth every quarter. Soon mediatek and nvidia will enter with Chrome books and a population decline as well.

My narrative is Intel is living in their past when they were a monopoly and not in the moment.
 

Arthur Hanson

Well-known member
When apple teamed up with tsmc it was the beginning of the end for Intel. They need to reinvent themselves. Record laptops sales and still a decline when investors demand growth every quarter. Soon mediatek and nvidia will enter with Chrome books and a population decline as well.

My narrative is Intel is living in their past when they were a monopoly and not in the moment.
Excellent observation, Apple has the money and TSM has the expertise and fantastic ability to execute and Intel has yet to keep up in either area. TSMC has built very strong partnerships based on rock-solid trust and the fact that they are strictly a fab and never compete with their customers. Intel, cannot have it both ways and has to make a choice.
 

tooLongInEDA

New member
Excellent observation, Apple has the money and TSM has the expertise and fantastic ability to execute and Intel has yet to keep up in either area. TSMC has built very strong partnerships based on rock-solid trust and the fact that they are strictly a fab and never compete with their customers. Intel, cannot have it both ways and has to make a choice.
I was thinking over this a few weeks ago and an old book title about software and the open source vs central control debate came to mind ("The Cathedral and the Bazaar"). Or more recently Niall Ferguson's book about networks and hierarchies ("The Square and the Tower").

Intel has always been the Cathedral model (IDM). TSMC is the Bazaar.

Both perfectly valid approaches.

Whether it's possible to successfully operate in both modes within the same company at the same time is very much an open question. The organisational DNA/culture always prefers one approach over the other - one is always seen as higher margin or "better". And the cultures of IDM and foundry are very different. Are there any practical examples of companies successfully - and over a sustained period - doing both concurrently ?
 
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