Just weeks after doubling down on its vertically integrated model, chipmaker Intel Corp. has released an economic impact report showing it directly contributed $25.9 billion to the U.S. GDP.
In New Mexico, the report indicates that the company contributed $243 million in direct compensation and directly contributed $400 million in state GDP in 2019, the year the report tracks. The report states Intel employs 1,200 people directly — the bulk at its Rio Rancho facility, and has a boarder impact of 6,000 jobs.
All told, the company employs 52,000 people and indirectly supports 700,000 jobs nationwide.
Last week, Intel indicated that hiring at its Rio Rancho plant plateaued in 2020 following one of its biggest hiring pushes in many years. Officials confirmed that after adding more than 500 employees in 2019, Intel hired 82 people at the Rio Rancho plant last year. The period of slowed hiring came during unprecedented economic interruption due to the Covid-19 pandemic and followed two expansions announced in the couple of years prior.
Intel's report includes detailed numbers on four states where Intel has its largest U.S. footprints.
In Oregon, where Intel’s Ronler Acres campus is the research and development hub for its manufacturing:
- Intel directly contributed labor income of $4.2 billion.
- It directly contributed $10.3 billion to Oregon GDP and indirectly contributed $19.4 billion to Oregon GDP.
- Intel comprises 4% of Oregon’s employment, the highest of any state in which it operates.
In California, where the company is headquartered:
- It directly employs 14,800 and has a broader employment impact of 142,900 jobs.
- Intel has $4 billion in direct employee compensation and directly contributed $8 billion in state GDP.
- Indirectly, Intel contributed $14.2 billion in labor income and $24.9 billion in state GDP.
In Arizona, where the company recently announced an expansion:
- It has 10,300 direct jobs and 58,600 indirect jobs.
- Intel had $2 billion in direct employee compensation and directly contributed $3.9 billion to state GDP.
- Indirectly, Intel contributed $4.9 billion in labor income and $8.6 billion in GDP.
The report — commissioned by Intel and performed by an outside group — comes as the company is pursuing a strategy rooted in its U.S.-based manufacturing. New CEO Pat Gelsinger revealed last month Intel is vying for a contract with the federal government to supply semiconductors for defense projects. Plus, the company is preparing to ramp up operations in Phoenix, and recently announced plans for two new factories in Chandler, Arizona. The $20 billion investment is expected to create 3,000 high-tech jobs, according to Intel.
All of this comes as the industry is grappling with a chip shortage. Much of semiconductor manufacturing is in Asia, where most fabs are located.
“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,” wrote Gelsinger in the report introduction.
He has been outspoken since taking the job in February about boosting American semiconductor manufacturing.
The company is slated to release its first quarter earnings Thursday. This will be the first earnings call led by Gelsinger.
— Albuquerque Business First reporter Collin Krabbe contributed to this article.
