Intel Case Study

515 Words3 Pages
What countries is Intel considering as it locates its new fab? They are looking at Malaysia, Singapore, Czech Rep. for new locations and already have a presence in Ireland and Israel. In the USA they are looking at several states Texas, South Carolina, Oklahoma, and New York. What are four key considerations that Intel must look at when deciding on a new fab location (per the case)? 1. Long term logistics (don’t want 30 fabs in 30 locations) 2. Need to develop markets and revenue streams 3. Financials 4. Politics If you were CEO, where would you locate the new fab and why? Please be detailed and thorough in your response. If I were the CEO I would choose to use an existing site and ramp up production and change to the other microprocessor. My decision is based on the 4 key considerations. 1. Long term Logistics. They don’t want to have fab locations all over the place. Keeping factories and technological change close to its core will inspire innovation and change. Which is at the heart of Intel. 2. Need to develop markets. In an undeveloped market it’s very difficult to make your top of the line product work efficiently. The drawback I see in moving to Singapore and Malaysia is the Geopolitical risks that are involved. You fall subject to rules and policies that could cause serious manufacturing trouble in the future. Where will the skilled labor come from? Intel’s strategy has always been to stay two steps ahead I don’t see how you can do that with less skilled labor. They need the innovation to continue to succeed. Another consideration is the time involved with overseas operations they are predicting up to 3 years where the US plants could be ready a year earlier. 3. Financials. Yes initially the grant or investments would offset and go straight to the bottom line but then you will be playing the build a fab and close routine when
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