While AMD banks on Abu Dhabi, Intel waves a $7 billion US flag

In what may very well be an intentional jab at its competitor's survival plan that relies on foreign investors, Intel yesterday began touting its own $7 billion investment plan as an indicator of its "faith in the US."

"When we face a crisis -- let's be honest -- our habit is to hunker down and hold fast to what we have and what we know: the jobs, the businesses, the institutions, and the ways of life we are familiar with and don't want to lose," stated Intel CEO Paul Otellini, in a speech to the Economic Club in Washington, DC yesterday. "It is a perfectly understandable reaction when uncertainty becomes a part of our lives. But I see this economic crisis differently. Our institutions and paradigms have become unfrozen by this economic crisis. We have a once in a lifetime opportunity to re-shape how things will look and behave as growth resumes.

"This is riskier. There is more uncertainty. It is less comforting. Taking that leap can be downright scary. But it is the only proven path to pull out of bad times. If we want to see a return of American prosperity, we have no other choice than to invest in creating the future, not merely preserving the past."

That is how Otellini spearheaded his company's announcement of a $7 billion investment in 32 nm manufacturing facilities, building onto its existing foundries in Arizona, Oregon, and New Mexico. This while AMD is on the brink of implementing a reinvention plan of its own, but one which relies upon its spinoff company to build a $4.6 billion facility in Malta, while strengthening AMD's former fabrication assets in the UAE.

Intel says its investment will maintain the employment of some 7,000 employees -- about 15% of its global workforce -- in an effort that it predicts will lead to 75% or more of its 32 nm chip sales to overseas customers.

"For any nation in the 21st century, but particularly for the United States, supporting a true culture of investment is the key to long-term success...investment by government, investment by business, investment by individuals. We will argue about the size, timing and return on the investments we make. But on this much there has to be agreement: lf we are committed to investing in ideas to improve -- not just maintain -- what we have and what we know, the United States will do more than just recover from this recession. We will emerge, once again, as a competitive, global powerhouse. This is the essential stimulus plan we need; not one which attempts to shore up the status quo or delay the inevitable changes needed," Intel's CEO continued.

In his call to action, Otellini invited other US companies to join Intel's effort, although he didn't name any specifically. Then referring to the broader effort, including from the US government, to stimulate and reinvigorate the nation's economy, he concluded, "A secure future requires investment in areas that will give rise to new ideas and new industries. We can't look to government to do this. In fact, creating the future is an area where American business and entrepreneurialism has a stellar track record, one that I believe we can continue."