RIO RANCHO, N.M. (KRQE) – Intel announced on Monday morning that it will be investing $3.5 billion into its Rio Rancho campus and that means hundreds of more jobs will be returning. Intel executives in addition to the governor and other state, county, and local officials were at the campus to celebrate the announcement.
“We are proud to make this investment in New Mexico and to build on Intel’s more than 40 years of rich history in New Mexico,” Kevyan Esfarjani, Senior Vice President at Intel said. The governor called the move one of the biggest investments by a private sector company into the State of New Mexico in recent years.
“Intel’s $3.5 billion investment in New Mexico will create 700 new jobs in the next three years and establish the Rio Rancho campus as the company’s domestic hub for advanced semiconductor manufacturing,” said New Mexico Gov. Michelle Lujan Grisham in a press release. “With this exciting development, we are already seeing the benefits of this year’s legislation expanding LEDA, generating high-quality and high-paying jobs for New Mexicans. The state and Intel have a 40-year partnership, and today, with innovative economic development tools and global demand for this technology, we can celebrate a new generation of workers and job growth at Intel’s New Mexico manufacturing plant.”
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The $3.5 billion will equip Intel’s New Mexico facility so it can manufacture new technologies, including working on new ways to assemble technology. “This investment is a huge opportunity for the site growth. It really gives us the new products and investment to open up larger portions of the site and really grow the products that we have to support Intel’s overall growth mission,” Katie Prouty, Vice President, and New Mexico site manager, said.
In addition to 700 new high-tech jobs at Intel, the investment will bring 1,000 construction jobs with construction happening later this year. The investment is also expected to impact about 3,500 jobs in the surrounding areas.
“This is the perfect shot in the arm as we’re emerging from the pandemic to get our small businesses back up and going and giving them a strong customer base to really help with that,” Rio Rancho Mayor Gregg Hull said.
Hull said the local government will now work with Intel to understand what the demand will be so it can plan. “There’s going to be a high demand I think not only in the housing but for commercial space. So, some of the vendors that are going to support this initiative will need to take up some locations here in the city of Rio Rancho and surrounding areas,” he said.
Lawmakers at Monday’s announcement called the investment a bipartisan effort. A bill passed in the 2021 special legislative session and signed by the governor helped seal the deal. The law allows for a portion of construction-related gross receipts tax to be rebated back to companies for large, significant job-creating projects.
Intel’s Rio Rancho campus currently has about 1,800 employees.
Intel by the numbers
- Average yearly employee compensation at end of 2020: $145,000
- Expected construction hires in 2021: 1,000
- New jobs in next 3 years: 700
- Current New Mexico employees: 1,800
- Annual Headcount:
- 2016: 1,800+
- 2016: 1,800+
- 2017: 1,100+
- 2018: 1,100+
- 2019: 1,200
- 2020: 1,800+
- 2021 (current): 1,800+
The investment brings 700 new jobs to the Rio Rancho campus which currently has more than 1,800 employees. At one point the company had more than 5,000 employees and over the years got as low as 1,200 employees.
The investment will increase Intel’s footprint in the state by about 40%. “We are proud to make this investment in New Mexico and to build on Intel’s more than 40 years of Intel’s rich history in New Mexico,” said Intel Senior VP of Manufacturing & Operations Keyvan Esfarjani.
The multi-year operation is also said to bring about 1,000 construction jobs and impact about 3,500 jobs in the surrounding community. Construction on the facility will start later this year. Rio Rancho Mayor Gregg Hull says this investment is just what the community needs to get back on its feet after the pandemic.
When Intel started downsizing around 2007 the housing market was hurt badly and there were many vacant homes.