For the second year in a row, New Mexico has
garnered national attention for one of the nation’s most impactful
economic development deals.
Intel’s $3.5 billion expansion of its Rio Rancho campus has been
recognized by Business Facilities as one of the top manufacturing deals
in the country, specifically representing manufacturing hubs. The
expansion, announced on June 1, 2021 by Gov. Michelle Lujan Grisham and
Intel, will create 700 new hi-tech jobs. Intel is currently hiring [2]
for those positions. The project will also create 1,000 construction
jobs with an estimated total project spend of $550 million. When
completed, the Rio Rancho location will be Intel’s domestic hub for
advanced semiconductor manufacturing. The facility originally opened 20
years ago in 2002.
“Intel’s expansion in New Mexico proves once again that we are the
place to be for companies seeking a strong workforce and a
business-friendly climate,” Gov. Michelle Lujan Grisham said.
“We’re continuing to invest in LEDA and other economic initiatives
because we know they work.”
Last year the state received a similar award in a different category for
the 2020 Netflix expansion, the first time New Mexico has ever been
recognized in these annual awards, and now that acknowledgement has now
come twice.
“Intel is one of many advanced manufacturing companies relocating or
expanding in New Mexico,” Economic Development Department Cabinet
Secretary Alicia J. Keyes said. “The State is very proud to once again
receive this recognition and we welcome the opportunity to share New
Mexico’s story of how we have become the best place for advanced
manufacturing. We have unsurpassed research assets, a wealth of
experience, new STEM talent, and a strong business climate with
impactful incentives. Both Intel and Netflix see that New Mexico is the
right place for them and the State is committed to being a strong
partner in their growth and expansion.”
The State of New Mexico will invest $5 million in Local Economic
Development Act (LEDA) funds in the Intel expansion. This was the first
LEDA investment made after a change to the act allowing for partial
Gross Receipts Tax sharing on business development projects that exceed
$350 million in construction and infrastructure costs.
The GRT change was championed by Gov. Lujan Grisham who asked the
Legislature to consider the measure during a special session in 2021.
The bill, SB1, was sponsored by Sens. Siah Correa Hemphill and Ron
Griggs, and Reps. Christine Chandler and Jason Harper.
Top honors in the 2021 Deal of the Year competition went to Tennessee
for a Ford Motor Company battery and vehicle manufacturing plant
representing an investment of $5.6 billion. The Silver Award went to
Taylor Economic Development Corporation in Texas for a new Samsung
Electronics’ state-of-the-art semiconductor manufacturing facility.
Other recognized projects included Toyota Battery Manufacturing, Smith &
Wesson, Hill’s Pet Nutrition, Peloton, and Texas Instruments. The 2021
Business Facilities’ 2021 Deals of the Year can be found here [3].
Business Facilities is a national publication that has been the leading
location source for corporate site selectors and economic development
professionals for more than 50 years.
Intel Corporation is the world’s largest semiconductor chip
manufacturer by revenue with ten manufacturing facilities worldwide.
New Mexico Economic Development Department | 1100 South St. Francis
Dr, Joseph M. Montoya Building, Santa Fe, NM 87505-4147
