Intel and Trump Announce $7B for Fab 42 Targeting 7nm

Intel's CEO Brian Krzanich announced at the White House that the company is investing $7 billion to complete its Fab 42 in Chandler, Arizona.

Days after Intel became one of the top tech companies in the United States to sign on to legal papers opposing President Trump's executive order temporarily banning residents of seven predominantly Muslim countries from visiting the US, the company's CEO was in the Oval Office expressing support for Trump.

Krzanich says the announcement comes partly in response in part to Trump's tax and regulatory policies. "This factory will produce the most powerful computer chips on the planet", Krzanich said.

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

The plans will complete a previous plant, Fab 42, that was started and then left vacant.

Intel's move comes as opposition to the Trump administration gains ground in Silicon Valley, last week forcing Uber's CEO Travis Kalanick to step down from Trump's business advisory council, and prompting almost all major Silicon Valley tech firms - including Intel - to join legal action against the President's executive order on travel to the U.S. Jeff FlakeJeff FlakeIntel, Trump tout new billion investment to create 10K jobs GOP senators raise doubts about Trump's wall Senators to Trump: We support additional Iran sanctions MORE (R) said in a statement.

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

"As a company cofounded by an immigrant, we support lawful immigration", Krzanich wrote in a tweet after Trump's executive order imposing a travel ban on seven Muslim-majority countries. While Trump celebrated the announcement as a win, later reporting revealed that in had agreed to give the company up to $7 million in tax credits.

Two weeks ago, Intel said it was establishing a pilot 7-nm plant to manufacture test chips.

Intel's stock rose after the announcement but pared gains before the market closed.

As sun streamed in the windows of the Oval Office on Wednesday, Trump invited Krzanich to introduce Intel's product.

When asked if Intel would bring jobs back to the United States that are now overseas, Krzanich did not directly answer the question, saying "this position is actually about growth and new jobs in the U.S".

Outside the U.S., Intel also operates factories in China, Vietnam, Malaysia, Israel, and Ireland. The new facility will be used to make new 7 nanometer chips that Intel plans to debut in the next few years.

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