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by dirkknudsen@gmail.com
April 7, 2025
INTEL JONES FARM - 2022
Intel has been in trouble the last few years, and today the company is in even darker waters, as if not enough is happening worldwide. Almost every day, news about our Nation’s largest semiconductor manufacturer is breaking. New CEO Lip-Bu Tan is not playing around. Last week, he announced a tentative Joint Venture between Intel and Taiwan Semiconductor (TSMC) that would allow the companies to benefit each other by bringing their respective strengths together, especially in regard to the Foundry side of Intel’s business. Despite having many analysts’ support, investors were unhappy about it, and Intel’s stock tanked on Friday, dropping to $19 a share. That was a loss of about 12% of the company’s value. This morning, the stock is trading a little below the Friday close and $7 a share lower than the March 18th high of $26 a share (down 28%).
This recent news surrounding Intel indicates a company at a critical juncture, navigating significant challenges while pursuing ambitious strategic shifts. The JV with Taiwan Semiconductor Manufacturing Co (TSMC) to operate Intel’s factories, alongside the ongoing efforts of new CEO Lip-Bu Tan to revitalize the company through a focus on customer engagement, engineering empowerment, and strategic restructuring, will decide the future. The massive chip foundries being built in Ohio and elsewhere seem to be in big trouble. But what will all these challenges and pressures mean here in the Tualatin Valley, where Intel is the major employer and anchors the entire State’s economy?
While Intel grapples with past financial losses and intense market competition, its renewed focus on artificial intelligence (AI), adoption of advanced chip technology, and commitment to domestic manufacturing, supported by government initiatives, offer a potential path towards recovery. The implications of these developments vary for Intel’s facilities in Hillsboro, Oregon. The Intel Gordon Moore Ronler Acres complex, a flagship site for production, research, and development (R&D), appears secure with ongoing investments and strategic importance. Hawthorne Farms, on the other hand, faces a high likelihood of being sold or repurposed as Intel consolidates its operations. The future of the Jones Farm campus is less certain, potentially seeing consolidation but likely remaining operational as a key R&D hub, possibly absorbing functions from Hawthorne Farms. There is no doubt that the potential joint venture with TSMC and the success of the new CEO’s strategy will be crucial determinants in shaping the long-term outcomes for both Intel Corp and its Oregon footprint.
Our research indicates that Hawthorne Farms will likely be spun off and sold. It is no longer needed based on sources we have talked to, and the real estate is highly desirable for redevelopment. So let’s consider that smaller employment base a non-factor. Jones Farm is a very important tech center for the company’s R&D efforts on the product side. It could play a huge role in the future for AI technologies, an area that Intel must expand into just to survive. Even if Jones Farm were to close, the Silicon Forest could survive. All that said, Ronler Acres must survive for the community to remain economically healthy.
The Intel Gordon Moore Ronler Acres complex appears to be a cornerstone of Intel’s future. This campus remains a flagship site for Intel’s production capabilities and is considered the central hub for the company’s leading-edge semiconductor research and technology development in the United States. Intel has demonstrated its long-term commitment to Ronler Acres through significant ongoing investments. The company plans to invest over $36 billion in its R&D operations in Hillsboro, primarily at the Ronler Acres campus, which includes the D1X fabrication facility. This substantial investment aims to enable Intel to maintain its position at the forefront of process technology development beyond 2025.
Based on our research and review of recent events, this is what we think is a likely outcome here in Hillsboro for Intel Corp.
Recognizing its enduring importance, the Ronler Acres campus was officially renamed Gordon Moore Park at Ronler Acres. Further bolstering the future of Ronler Acres, Intel received $1.8 billion in funding through the CHIPS Act specifically to upgrade its Oregon facilities, with a portion of this funding expected to support further expansion at the Hillsboro site, most likely the Ronler Acres complex. This government support underscores the strategic importance of Ronler Acres to the domestic semiconductor industry. Let’s hope the CHIPS ACT funding holds, as the Trump Administration has shown disdain for the Biden-era stimulus package.
Intel Ronler Acres Fab- Courtesy of Google
City Officials have indicated they are confident that Ronler Acres will remain a major employer and semiconductor force for years to come. Tens of Billions of dollars have been spent to create the monstrous complex in North Hillsboro that is unparalleled around the world. This highlights the scale and magnitude of the relevance it holds. It is also the first Fab with the region’s ASML High NA EUV lithography equipment. This cutting-edge technology is crucial for advancing semiconductor development and solidifies Ronler Acres’ position as a leading global center for R&D in this field.
Will Trump’s Tariffs Help or Hurt Oregon’s Intel? It’s Complicated.
The future of Intel’s massive chip-making operations in Hillsboro, Oregon, is caught in the crosshairs of President Trump’s new trade policies. This situation has potential upsides and some serious downsides for the local tech giant and the broader American economy.On one hand, if the government puts tariffs on computer chips made overseas, it could be a big win for Intel’s factories right here in the U.S. Think of it like this: if foreign chips become more expensive, American companies might be more likely to buy the ones made by Intel in Oregon. This could lead to more demand and potentially more jobs in the state. Plus, if the government is serious about boosting American manufacturing through tariffs, it might also offer more support and funding to companies like Intel, making chips on American soil.
However, there’s a flip side to this coin. The tariffs could also make things more challenging for Intel in Hillsboro. Even though computer chips themselves are currently exempt from the new tariffs, the equipment and materials needed to make those chips often come from other countries. If these become more expensive due to tariffs, Intel will have to spend more to produce its chips.
Another primary concern is China. It’s a massive market for Intel, meaning they sell a lot of their chips to Chinese companies. But China has already announced it will impose its own tariffs on American goods in response to Trump’s policies. This could make Intel’s products more expensive in China, leading to lower sales and potentially impacting Intel’s ability to invest in its Oregon facilities down the road.
Beyond these direct impacts, tariffs can also create problems with the complex global supply chains that companies like Intel rely on. If there are disruptions or delays in getting the necessary components, it could slow down production in Hillsboro and drive up costs. Plus, if tariffs make manufacturing more expensive in the U.S., Intel’s products might become less competitive in other countries where their rivals aren’t facing the same tariff burdens.
Finally, Americans could feel the pinch. Tariffs tend to lead to higher prices for a wide range of electronics, from smartphones to computers. If these devices become more expensive, people might buy fewer of them, which could ultimately decrease the demand for Intel’s chips, even the ones made in Oregon.
So, while tariffs could boost Intel’s domestic sales and potentially attract more government support, they also carry significant risks of higher costs, reduced sales in key markets like China, and disruptions to the intricate global network that keeps the semiconductor industry running. The full impact on Intel’s future in Hillsboro remains to be seen, but it’s a situation that will likely have ripple effects across the American economy.
Tariffs, Tan, and TSMC- three big factors to track as 2025 moves ahead and Intel and its stockholders look to navigate the rugged waters that we all find ourselves in these days.
Tan, Tariffs, TSMC, To Set Intel’s Future In Hillsboro
Intel has been in trouble the last few years, and today the company is in even darker waters, as if
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