Site Selection of Intel
TB0181
October 5, 1999
Intel’s Site Selection Decision in Latin America
Ted Telford faced a dilemma. As the only full-time member of Intel Corporation’s worldwide site selection team, he had to make a recommendation about where Intel should locate its first manufacturing plant in Latin America.1 After months of analysis, involving both desk research and numerous field trips to potential country locations, the site selection team had narrowed the choice to four countries: Brazil, Chile, Mexico, and Costa Rica. All were attractive in different ways, but now it was October 1996, and Ted had to write his final report for the headquarters office in Santa Clara. Headquarters would want his recommendation and evidence to support it. He shifted uneasily in his chair. At stake was a longterm investment decision involving $300-$500 million, a substantial amount of money even for a company like Intel, with over $20 billion in annual revenues. Ted hunched over his files, and began reviewing the data one more time.
Intel and The Semiconductor Industry
Microprocessors are the brains of personal computers. They are composed of millions of microscopically small transistors—essentially, tiny electronic switches—grouped and interconnected with each other on individual chips of silicon to store and manipulate data.2 This is why microprocessors are often
1 The principal members of the site selection team were Ted Telford, International Site Selection Analyst; Chuck Pawlak, Director, New Site Development; and Bob Perlman, Vice President for Tax, Customs, and Licensing. Telford and Pawlak worked out of Intel’s Chandler, Arizona, office; Perlman was based at the headquarters office in Santa Clara, California. Beyond these three members, there was an extended group of about 15 Intel employees all over the world who participated in detailed assessment of countries on issues such as energy availability, construction, operations, security, etc. Frank Alvarez, Vice President of
October 5, 1999
Intel’s Site Selection Decision in Latin America
Ted Telford faced a dilemma. As the only full-time member of Intel Corporation’s worldwide site selection team, he had to make a recommendation about where Intel should locate its first manufacturing plant in Latin America.1 After months of analysis, involving both desk research and numerous field trips to potential country locations, the site selection team had narrowed the choice to four countries: Brazil, Chile, Mexico, and Costa Rica. All were attractive in different ways, but now it was October 1996, and Ted had to write his final report for the headquarters office in Santa Clara. Headquarters would want his recommendation and evidence to support it. He shifted uneasily in his chair. At stake was a longterm investment decision involving $300-$500 million, a substantial amount of money even for a company like Intel, with over $20 billion in annual revenues. Ted hunched over his files, and began reviewing the data one more time.
Intel and The Semiconductor Industry
Microprocessors are the brains of personal computers. They are composed of millions of microscopically small transistors—essentially, tiny electronic switches—grouped and interconnected with each other on individual chips of silicon to store and manipulate data.2 This is why microprocessors are often
1 The principal members of the site selection team were Ted Telford, International Site Selection Analyst; Chuck Pawlak, Director, New Site Development; and Bob Perlman, Vice President for Tax, Customs, and Licensing. Telford and Pawlak worked out of Intel’s Chandler, Arizona, office; Perlman was based at the headquarters office in Santa Clara, California. Beyond these three members, there was an extended group of about 15 Intel employees all over the world who participated in detailed assessment of countries on issues such as energy availability, construction, operations, security, etc. Frank Alvarez, Vice President of