Hobbs not worried Intel will cut Arizona jobs

(The Center Square) – Arizona Gov. Katie Hobbs is not concerned that Intel’s planned global layoffs could have an impact on the state.

“They're expanding here. We're thrilled to have their expansion here. We're work working with them on workforce initiatives to grow the skilled pipeline of workers that they need. We're continuing to do that,” she told The Center Square at a media availability on Tuesday.

The technology company, which is one of the biggest employers in the state, is under scrutiny for wanting to cut 15% of its workforce worldwide, or 15,000 people, and few details besides possible cuts in Israel have been revealed.

Intel is under scrutiny for the cuts after it recently was granted up to $8.5 billion in federal taxpayer dollars through the CHIPS and Science Act, which includes funding for semiconductor efforts in Arizona. The act is meant to serve as a way to take some of the pressure off of the island nation of Taiwan, which holds the vast majority of the semiconductor industry, as tensions rise with China.

The Center Square previously reported that the governor’s office was holding off for more details before commenting on the layoffs.

The state of Arizona and Intel recently announced a partnership or semiconductor apprenticeships , as there is a hope that the jobs in the skilled semiconductor workforce will be filled by local talent to avoid further delays and having to bring a high number of international workers.

“Facility technicians are especially difficult to find,” Christy Pambianchi, Intel's Chief People Officer, said in a statement last month about the locally-based program. “There is a much smaller pool of trained applicants with this specific skill set. The Intel apprenticeship program addresses this challenge by expanding the semiconductor talent pipeline and providing critical support structures, especially needed for women and underrepresented groups, to help meet the workforce demand of the future.”

Nikkei Asia reported in March that Intel and Taiwan Semiconductor Manufacturing Company have faced obstacles with their Arizona investments when it comes to workers and the high costs due to inflation. Chips are found in everyday technology, and investments in Arizona have ranged from building the chips to testing facilities, and other components of the supply chain.