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Published by:
Stanford Business School (2006)
Version:
29 August 2005
Length:
29 pages
Data source:
Field research

Abstract

This case describes the highly complex strategic and financial considerations Intel''s CEO must take into account in deciding whether and where to build a state-of-the-art microprocessor factory (known as a ''fab''). The case specifically examines a fab location decision made by Intel in 2002, where it faced mounting pressures and attractive subsidies to locate a state-of-the-art fab in Asia. Intel must balance purely financial considerations with strategic considerations, such as the impact of the location of a new fab on its existing network of plants, as well as the geopolitical concerns of the governments of the United States, China, and others. The case includes the voices of key decision makers at Intel, including the CEO, chief financial officer (CFO), and head of manufacturing.

Topics

Microprocessor; Financial strategy; Strategic planning
Industry:

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