Can Ailing Boomers Be Intel’s New Market

From a Sara Solovitch article in the Silicon Valley / San Jose Business Journal, Intel is collecting data on the “860 million people worldwide who are diagnosed with one or more chronic diseases,”

That number will double in the next 18 years and double again in another 25. How Intel will turn that into future profits is anyone’s guess. From the article:

“They see a future of profit gain for innovators with products and services to deal with this senior tsunami and years of profit drain at businesses where growing numbers of employees become caregivers.”

"Yes, it's a business opportunity for Intel but it's also a business imperative," Eric Dishman, general manager and global director of Intel's Health Research & Innovation Group concedes. "We have 90,000 employees and we know that a third of them do elder care. For many, it's a huge challenge -- like having a day job and a night job."

“According to an AARP study, the economic value of family caregiving is worth $350 billion a year -- with productivity losses costing American businesses $33 billion.”

“As 78 million Baby Boomers reach retirement age in less than three years, the impact is set to skyrocket. By 2030, 60 percent of Boomers will be managing more than one chronic condition; by 2040, seniors will outnumber caregivers 3-to-1.”

Previous articles: Intel Corp. An Interesting Twist About Their Layoffs, Intel Chipping Away Another 1,000 and Intel Investing 2.5B In New Plant - In China

Intel Corp. An Interesting Twist About Their Layoffs

From another Ben Ames article in NETWORKWORLD, in August Intel Corporation will begin releasing 800, from a total staff of 1,300, from their Colorado Springs plant.

Intel has previously announced layoffs of 10,500 and these 800 look to be an addition to that number. I’ve written about Intel before in: Intel Chipping Away Another 1,000 and Intel Investing 2.5B In New Plant – In China.

The Twist: The U.S. Department of Labor has denied an Intel request for a grant from the DOL’s Trade Adjustment Assistance (TAA) program. Under the TAA, funds are available to offset the cost providing career assistance to displaced workers.

Could Marvell be purchasing their chips from a foreign manufacturer that Intel has an interest in? Or is it that the DOL has decided not to reward a company that is moving so many jobs to lower cost labor areas.

Intel Chipping Away Another 1,000

From the Observer and written By Tom Treweek, Intel is laying off about 21 %, or 1,000 people, at its Sandoval County “campus” in New Mexico.

As written about in; Intel Investing 2.5B In New Plant - In China. Intel is investing $1 billion to retool their fab11x to produce 45 nanometer chips. But fab 11 and other undisclosed positions, across campus, will be eliminated.

From the Observer article: “Intel employees leaked news of the layoffs; there was no press release. Shipley said the company wanted to inform its employees before the news appeared in the media.”

Intel Investing 2.5B In New Plant - In China

This information came from an article in the Sacramento Business Journal.

It’s hard to be upset with Intel’s decision to build a major manufacturing “campus” in Dalian, China. The world leading computer technology company building a plant in the world’s largest and fastest growing country is a nobrainer. Not to mention the additional benefit of low labor costs.

China isn’t the only location that Intel has expansion plans for, from a February 26th press release:

Rio Rancho, New Mexico; $1 Billion

"Our new 45 nanometer process represents one of the most significant manufacturing breakthroughs in decades and we believe that putting it in our factory in New Mexico will help us deliver the best possible products for our customers," said Paul Otellini, Intel Corporation's president and chief executive officer. "Our Rio Rancho site has successfully operated in New Mexico for 27 years. Based on that success, we are pleased to position Fab 11X for Intel's next generation of technology."

Chandler, Arizona; $3 Billion

“…The company is currently building two other factories that will use the 45nm process. The $3 billion Fab 32 in Chandler, Ariz., will commence production late this year…”

Kiryat Gat, Israel; $3.5 Billion

“…$3.5 billion Fab 28 in Kiryat Gat, Israel, will begin production the first half of next year.”

From a June 22, 2006 Press Release:

Leixlip, Ireland; $2 Billion

“The US$2 billion factory has begun high-volume production using 65nm process technology produced on the industry’s largest wafer size (300mm), which provides the Intel fab with the potential to generate the world’s highest microprocessor output at the lowest cost. Along with Intel’s Fab 12 in Arizona and D1D fab in Oregon, the new facility (called Fab 24-2) is the most technologically advanced, high-volume semiconductor manufacturing plant in the world building multi-core microprocessors.”

From an older Press Release dated September 15, 2005:

Shanghai, China; $1.3 Billion

“For more than two decades, Intel has invested nearly 1.3 billion dollars to China and cultivated a workforce of over 5,000 talented professionals. R&D has been a huge part of the company's investment since it first established the software labs in China in 1994.”