Paul and Thread - Jan 26 article about possible Intel Co. Springs fab
Intel Considers Colorado Springs, Colo., for Microchip Plant
Joanna Bean
Jan. 26, 2000
Knight Ridder Tribune Business News - KRTBN
KRTBN
Copyright (C) 2000 KRTBN Knight Ridder Tribune Business News; Source: World Reporter (TM)
Intel Corp., the computer chip giant, is considering Colorado Springs for a manufacturing plant, officials said Tuesday.
Intel reportedly has looked at the vacant chip plant built but never occupied by Rockwell International Corp. in northwest Colorado Springs, as well as other land in the area. It's not known how large an Intel plant here would be or when operations would begin.
An Intel plant in the Springs would be a boon to the region, already home to chip plants owned by Atmel and Vitesse that employ more than 2,000.
Intel is the world's biggest maker of computer chips and one of the technology industry's most revered companies. The company, founded in 1968 and based in Santa Clara, Calif., employs more than 64,000 people worldwide and had revenue in 1998 of $26 billion.
Officials with Intel were in Colorado Springs on Tuesday to meet with local economic development and government agencies. One issue they discussed was incentives for which Intel would qualify if it put a chip-making operation here, said Frank Barber, manager of El Paso County's economic development office.
Barber, who attended the meeting, said it was held downtown at the offices of the Greater Colorado Springs Economic Development Corp. Attendees included officials from Colorado Springs School District 11, the city of Colorado Springs and state government, according to some at the meeting.
Intel spokesman Bill MacKenzie said the company does not comment on "where our people might be looking" but noted the company is "always looking at a variety of sites."
MacKenzie, who works out of Intel's 12,000-employee operation in Oregon, was in Colorado Springs on Tuesday. Asked why he was here, MacKenzie said, "I'm here as part of our normal, national business operations looking at opportunities."
Robert Scott, EDC president, declined to comment on the Intel meeting. He referred questions to Intel, saying Intel had "recently" supplied him with the phone number of an Intel spokesman "in the event anybody from the press has questions."
Intel has said it plans to add manufacturing capacity this year, spending $5 billion to build new plants and upgrade existing ones, said company spokesman Chuck Mulloy. On Tuesday, the company said it plans to build a $2 billion plant in Chandler, Ariz., that would employ 1,000. Intel already employs 8,100 in the state. It has no significant Colorado presence.
Intel reportedly has looked at Rockwell's plant here, which has stood vacant on Garden of the Gods Road since Rockwell built it in 1996. When the plant was built, Rockwell planned to spend $1 billion equipping it, and it was expected to employ 1,000. But Rockwell never installed equipment, and the building is essentially a concrete shell.
Terry Francisco, Rockwell spokesman at the company's headquarters in Milwaukee, Wis., declined to comment on whether Rockwell officials are negotiating with any particular company. Rockwell is asking $60 million for the plant and surrounding 61 acres.
"We have seen increased interest in the building as the semiconductor industry has rebounded," Francisco said. "We have no firm agreement with anyone."
If Intel put a manufacturing operation here, the company would be eligible for personal property tax rebates from governments that collect the tax. The tax is levied on a company's personal property, which includes manufacturing equipment, office equipment and furnishings. Agencies that rebate a portion of the tax locally are the city, county and school districts. Economic incentives, such as personal property tax rebates, are common incentives that can sway a company to locate in one community over another. |
