ArsTechnica On Intel Making Batteries

I love ArsTechnica, but I have to question part of an article that Jon Stokes wrote today about Intel making car batteries.

I bring this up because Intel doesn’t actually make as many chips over here as they used to. Most of the company’s sales are overseas (Asia is the biggest market), so that’s where a large and growing percentage of its workforce is, as well. The company’s pronounced shift in moving jobs abroad has been a sore spot for American Intel employees over the past decade, but I hear that, internally, the Intel top brass makes no bones about the fact that they have no qualms about moving the plants closer to the customers.

I am employed by Intel in the manufacturing side of their business. I don’t pretend that I know everything that is going on but I’m pretty sure this part of the article is incorrect. Most of Intel’s manufacturing is in the United States with the rest in Ireland and Israel. The only Asian capacity is in China and it hasn’t finished construction.

I also don’t know anything about Intel replacing manufacturing capacity in the US with factories outside of the US. My opinion: It costs billions of dollars to build a factory, Intel isn’t about to move capacity from existing locations to overseas unless there’s economic reasons to do so and highly skilled worker base. Just because the customers are there doesn’t seem like a good enough reason.

As far as Intel making batteries? I have to agree with the rest of the article. It’s better if Intel invest in battery tech R&D rather than try it themselves. Not that I wouldn’t love to see Intel broaden out in other ventures. Intel has failed at every attempt to make non microchip businesses (see LCOS and the watches they made that I can’t find a link to) as profitable as chips and top management knows that.

Conan OBrian Visits Intel Santa Clara

Intel sponsored Conan OBrian when he was in San Francisco. He thanked them by visiting the Santa Clara site. Everything he says is funny and sadly true.

Update 7/8/07: Evil, money grubbing NBC forced YouTube to remove the clips.

1000 People To Be Laid Off At Intel Rio Rancho Plant

RIO RANCHO, N.M. (AP) — Intel Corp. said Tuesday that it expects to cut more than 1,000 jobs at its Rio Rancho plant as the company ends production of an older silicon wafer technology. Intel will stop making the 200-millimeter wafers at the plant by the end of August, and affected employees will be offered severance packages or can apply for other jobs within the company, spokesman Jami Grindatto said.

Anyone who works at the Intel Rio Rancho plant knew this was coming. I know a large number of people that have been waiting to for a chance to get out with a severance package. Still, this sucks. One fifth (20%) of the people that work at this plant will be gone wether they like it or not.

The AP article doesn’t mention when Intel expect to have everyone out but this KOB article say they start in August.

A article from the Albuquerque Tribune says:

Larry Waldman, a senior economist with the University of New Mexico’s Bureau of Business and Economic Research, projects the layoffs expected to come in August could cause the loss of another 1,000 jobs in places such as the retail and service sectors. “It’s not going to be just 1,000 jobs when you look at effects on other parts of the economy,” said Waldman, referring to retail and service jobs that might supplement Intel workers. While that may not be the rosiest picture, Waldman said the losses will have only a minor impact on the economies of both the state and Albuquerque metro

Update 5/7/07: From the Trib:

U.S. Sen. Pete Domenici has asked Labor Secretary Elaine Chao to assign staff from her agency’s Dallas office to coordinate job placement programs for the 1,000-plus workers expected to lose their jobs at Intel Corp.’s Rio Rancho plant.

Intel Will Upgrade Rio Rancho Plant

Intel Corp. said on Monday it will spend $1 billion to $1.5 billion to retool a factory in New Mexico, which will start to make chips with cutting-edge 45-nanometer-wide transistors in the second half of 2008.

The factory to be renovated in Rio Rancho, New Mexico, is known as Fab 11X and will be the fourth Intel plant to use 45-nanometer technology, which includes new materials that boost chip efficiency by cutting leakage of electrical current.

My employment is secure.

Here’s a little bit more information about the IRB that was used to fund this upgrade. Looks like there’s some money left in the pot.