Out-Educating the Competition

October 3, 2019 0 By Ronny Jaskolski

Mr. Otellini:
Good morning. (applause) Good morning; what a great day. I wanted to add my welcome to
this morning and, in particular, welcome Governor
Kitzhaber over there, and thank you for being here. (applause) I’m excited to be here today to
celebrate American innovation and American manufacturing. Our country and this company
have been built on innovation — and manufacturing has been at
the heart of America’s economy for over a century. Technology and the semiconductor
industry have been driving economic growth for
the last 50 years. In fact, when averaged
over the last five years, the semiconductor industry is
the nation’s number one exporter. Today, we celebrate the
construction of Intel’s new semiconductor manufacturing
plant, called D1X. For the past two years, I’ve
been discussing the need to re-ignite innovation in the U.S.
as a means of creating jobs and wealth in our society. I believe the world of
technology and a vibrant manufacturing base lies at the
heart of creating this future. This is one of the reasons for
our continued investment in Oregon, and our commitment
to build Fab D1X. This new factory will play
a central role in extending Intel’s unquestioned leadership
in semiconductor manufacturing. The transistors and chips it
will produce will be the most dynamic platform for innovation
that our company has ever created. Together, they will enable
more capable computers, the most advanced consumer
electronics and mobile devices, the brains inside the next
generation of robotics, and thousands of other applications
that have yet to be invented. I’d like to pause for a moment
to give you a glimpse of what will be involved in creating such
a technologically advanced operation. ♪(music playing)♪ (cheers and applause) Yeah. (applause) Wouldn’t it be great if it
was that easy and that cheap? (laughter) Seriously, D1X will be a vital
addition to what’s already one of the largest and most advanced
semiconductor research and manufacturing
sites in the world. Building it, we will create
approximately 3,000 construction jobs over two years. The structure will require 19
tons of steel, 40 miles of pipe, 13,000 truckloads of cement. When finished, D1X will have
a clean room as big as four football fields. It is scheduled for
startup in 2013, and it will be the first
14-nanometer microprocessor factory in the world. (applause) Intel’s a global company
today, and proudly so. Yet, we think of ourselves
as an American enterprise. Intel generates three-fourths
of its revenues overseas, yet maintains three-fourths of
its manufacturing here in the United States. (applause) The company sets the bar for world-class
manufacturing around the world. We believe in this country’s
power to create a future where America maintains its
unparalleled global leadership and where jobs in 21st century
industries are created and flourish. I’m pleased that the President
and his administration have taken a number of steps to
invest in innovation and education so that we are
building the skills needed to achieve success in the 21st
century and to grow the economy. At Intel, we believe that we
will help create the future. Building such a future requires
more than just investments in technology and manufacturing. We also need to invest in
educating and training the workers that will invent and manage
the industries of the future. At Intel, for example, over half
of our 82,000-person workforce have technical degrees and
nearly 8,000 people hold a Master’s degree or Ph.D. Looking forward, we are
concerned that there may be a shortfall of qualified experts
in science and math in our — in this country to meet
the needs of our industry. There are two fundamental
solutions to this problem. First, revitalizing math and
science education will generate qualified, interested,
and motivated students, and drive increased enrollments
in our great graduate schools. Then, government and businesses
need to make sure that all of these graduates are given the
opportunity to work in this great country. I want to commend the President
for his leadership and focus on improving our science,
technology, engineering, and math education. He has taken actions
— including key steps, like making STEM a priority —
in his $4 billion Race to the Top competition and his
Educate to Innovate campaign. I’m proud to tell you
that over the last decade, Intel has invested nearly $1
billion in education around the world, especially math
and science education. Our Intel Teach program has
already trained more than nine million teachers worldwide —
with nearly half a million right here in the in the U.S. — to
integrate technology into the learning process. The result is improved critical
thinking and problem solving skills. We view these efforts — and our
other education initiatives — as vital investments in the
next innovators, thinkers, scientists, and entrepreneurs. This investment comes full
circle when we can then hire the people we’re investing in. I’m proud to announce
that this year, Intel will hire
4,000 new permanent, highly skilled employees in
the U.S. above and beyond the factory jobs I’ve
previously mentioned. These new employees will
focus on areas that span the exploration of new materials to
create even smaller transistors, to products that we believe will
transform the way that health care and education
are delivered, to future technologies that
involve augmented reality and computers that can read minds —
or at least anticipate your needs. (laughter) The investments I’ve discussed
today are long-term investments in the things that make
innovation possible. They also send a clear message
that the United States will remain the location for Intel’s
most advanced technology development and manufacturing. And I’ve saved the
best news for last — I’m happy to announce another
new multi-billion dollar investment in America. Intel will soon begin
construction in Arizona on a greater than $5 billion
manufacturing facility that we will call Fab 42. This fab will focus on
14-nanometer silicon process technology and beyond. When completed, Fab 42 will be
the most advanced high-volume semiconductor
factory in the world. This activity will create
thousands of construction and permanent manufacturing jobs in
this country above and beyond what I’ve described earlier. My closing message is that the
best way forward for us is to unleash the unmatched creative
energies of the people of this country to transform our manufacturing
base for the 21st century. Intel is proud to do its part in
creating this promising future. With that, ladies and gentleman,
I’m pleased to introduce the President of the United States. (applause) The President:
Thank you. Thank you so much. Thank you, everybody. Thank you. Everybody, please have a seat. Thank you so much. I am thrilled to be here. I want to, first of all, thank
Paul for that introduction, and I want to thank Paul for
agreeing to be part of our administration’s new Council
on Jobs and Competitiveness. I look forward to our continuing
conversations when we meet next week. I also want to acknowledge
a wonderful governor, Governor Kitzhaber, who is here. Thank you so much for all
the work that you’re doing. (applause) And the mayor of
Hillsboro, Jerry Willey, thank you for the
great work that you do. (applause) And I want to thank everybody
here at Intel for hosting us here today. We just had an amazing tour. One of my staff, he
said, it’s like magic. (laughter) He did, that’s what he said. (laughter) I had a chance to see everything
from an electron microscope to the inside of your
microprocessor facility, the clean room. And I have to say, for all
the gadgets you’ve got here, what actually most impressed
me were the students and the science projects that I
just had a chance to see. It gave them a chance to talk
about things like quantum ternary algorithms — (laughter) — and it gave me a chance to
nod my head and pretend that I understood what they
were talking about. (laughter and applause) So that was the
high school guys. Then we went over to — (laughter) — seriously. Then we went over to meet some
seventh graders, six girls, and it was wonderful
— all girls — who had started a science
project after school that involved Legos. So I’m thinking, now
this is more my speed. (laughter) I used to build some pretty mean
Lego towers when I was a kid. (laughter) I thought I could participate —
only these students used their Legos to build models —
to build robots that were programmable to model brains
that could repair broken bones. So I guess that’s
different than towers. (laughter) It’s not as good. (laughter) The towers. (laughter) So I couldn’t be prouder of
these students and all the work that they’ve done. And in my State of
the Union address, I said that it’s not just the
winner of the Super Bowl who deserves to be celebrated, but
also the winner of science fairs. And since the Packers
beat my Bears — (laughter) — I’m reserving all my
celebrating for the winners of the service fairs this
year — the science fairs. They deserve applause. (applause) They deserve our
applause and our praise, and they make me optimistic
about America’s future, just as visiting this facility
makes me optimistic about America’s future. I’m so proud of
everybody here at Intel, not only because of what you
do for these students or this community, because — but because
of what you do for the country. A few weeks ago, I went to the
Chamber of Commerce and I talked about the responsibility that
American businesses have to create jobs and invest
in this country. And there are few major
companies that take this responsibility as
seriously as Intel. In 1968, Intel started as one of
Silicon Valley’s first start-ups. And as you grew in leaps and
bounds in the ’80s and the ’90s, you experienced the competitive
pressures of globalization — the changes in technology
that made it cheaper for many computer companies to start
hiring and manufacturing overseas. And over the years, you’ve
done some of this yourself. And yet, by and large, Intel
has placed its bets on America. As Paul just mentioned,
three-fourths of your manufacturing still happens
right here in the United States. This year you’ll hire another
4,000 American workers. You’ll create good construction
jobs upgrading your facilities and building new plants in
Arizona and right here in Oregon. And this kind of commitment has
always been part of Intel’s philosophy. The founder of this company,
the legendary Andy Grove, has said that he’s always
felt two obligations. One obligation is to
your shareholders. But the other obligation
is to America, because a lot of what Intel has
achieved has been made possible, in Andy’s words, “by a
climate of democracy, an economic climate, and
investment climate provided by our domicile, the
United States.” Intel is possible because of the
incredible capacity of America to reinvent itself and to allow
people to live out their dreams. And so the question we have
to ask ourselves now is, how do we maintain this climate
that Andy Grove was talking about? How do we make sure that more
companies like Intel invest here, manufacture
here, hire here? In a world that is more
competitive than ever before, it’s our job to make sure that
America is the best place on Earth to do business. Now, part of that requires
knocking down barriers that stand in the way of
a company’s growth, which is why I’ve proposed
lowering the corporate tax rate and eliminating
unnecessary regulations. It also requires getting
our fiscal house in order, which is why I’ve proposed a
five-year spending freeze that will reduce the deficit
by $400 billion. That’s a freeze that will bring
our annual domestic spending to its lowest share of the economy
since Eisenhower was President. Now, to really get our deficit
under control we’re going to have to do more. And I want to work with both
parties to find additional savings and get rid of excessive
spending wherever it exists, whether it’s defense spending or
health care spending or spending in the tax code, in
the form of loopholes. But even as we have to
live within our means, we can’t sacrifice
investments in our future. If we want the next
technological breakthrough that leads to the next Intel to
happen here in the United States — not in China
or not in Germany, but here in the United States
— then we have to invest in America’s research
and technology; in the work of our
scientists and our engineers. If we want companies like yours
to be able to move goods and information quickly and
cheaply, we’ve got to invest in communication and
transportation networks, like new roads and
bridges, high-speed rail, high-speed internet. If we want to make sure Intel
doesn’t have to look overseas for skilled, trained workers,
then we’ve got to invest in our people — in our schools, in
our colleges, in our children. Basically, if we want
to win the future, America has to out-build,
and out-innovate, and out-educate and out-hustle
the rest of the world. That’s what we’ve got to do. (applause) So today I want to focus
on one component of that, and that is education. That’s what I want
to talk about today. Over the next 10 years, nearly
half of all new jobs will require education that goes
beyond a high school degree. Times have changed. It used to be if you were
willing to work hard, you could go to a factory and
you might be able to get a job that lasts 20 years,
provide good benefits, provide decent salary. These days those jobs
are far and few between. Many of the jobs that are
going to exist in the future, that exist now — like
the ones here at Intel — require proficiency
in math and science. And yet today as many as a
quarter of our students aren’t even finishing high school. The quality of our math and
science education lags behind many other nations. As we just heard Paul say,
companies like Intel struggle to hire American workers who have
the skills that fit their needs. So we can’t win the future if we
lose the race to educate our children. Can’t do it. In today’s economy, the quality
of a nation’s education is one of the biggest predictors
of a nation’s success. It is what will determine whether
the American Dream survives. And so it’s the responsibility
of all of us to get this right: parents, teachers,
students, workers, business and government. We’re all going to have to
focus on this like a laser. And over the past two years,
my administration’s guiding philosophy has been that when it
comes to reforming our schools, Washington shouldn’t try to
dictate all the answers. What we should be doing is
rewarding and replicating the success of schools that have
figured out a way to raise their standards and improve
student performance. And so here’s what we did. Instead of pouring federal
money into a system that wasn’t working, we launched
a competition. We called it Race to the Top. To all 50 states we said if you
show us reforms that will lead to real results, we’ll
show you the money. Race to the Top has turned out
to be the most meaningful reform of our public schools
in a generation. For less than 1% of what we
spend on education each year, it has led over 40
states — 40 — to raise their standards for
teaching and for learning. And these standards weren’t
developed in Washington — they were developed by
Republican and Democratic governors throughout
the country. Because we know that,
other than parents, perhaps the biggest impact on a
child’s success comes from the man or woman who’s sitting or
who is standing in front of the classroom, we’ve also focused a
lot on teaching, on teachers. We want to make teaching an
honored profession in our society. We want to reward good teachers. We want to stop making
excuses for bad teachers. And over the next 10 years, with
so many baby boomers retiring from our classrooms, we want to
prepare 100,000 new teachers in the fields of science,
technology, engineering, and math — fields that will
give the students the skills they need for the jobs that
exist in places like Intel. To ensure that higher education
is within the reach of every American, we extended — we put
an end to unwarranted taxpayer subsidies that
used to go to banks, and we put the savings towards
making college more affordable for millions of students. And this year, we want to make
permanent our tuition tax credit, which is worth $10,000
for four years of college. And finally, to make sure anyone
can get trained and prepared for whatever career they pursue, we
want to revitalize America’s community colleges. Not everybody needs to go
to a four-year college. And so we’ve launched a
nationwide initiative to connect graduates that need a job with
businesses that need their skills. And we’ve drawn lessons
from Intel’s experience. For years, Intel has recognized
the value of these kinds of partnerships between
schools and businesses. This company understands that
your success depends on a pipeline of skilled workers who
are ready to fill high-tech jobs. And so over the last decade,
you’ve invested $50 million to support education in
the state of Oregon. You’ve started programs — (applause) That’s worth applause. (applause) You’ve started programs that get
kids interested in engineering and technology as early
as elementary school, like those six girls that I met. You’ve sponsored mentoring and
engineering competitions for poor and underserved
high school students. Your employees volunteer —
some of you probably here have volunteered — as tutors in
nearby schools and universities. You’ve helped train 7,000 Oregon
teachers over the last 10 years. Your science fairs, your talent
searches are some of the largest and most prestigious
in the world, producing multiple
Nobel Prize winners — and I expect some of the
students I met will qualify soon. (laughter and applause) And we were so grateful that
Intel was one of the four companies that initially joined
our administration’s nationwide campaign to boost math and
science education here in America, as part of a new organization
called “Change the Equation.” So you guys have been
pretty busy here at Intel. (laughter) You’ve given countless students
the chance to succeed, and for that you
should be very proud. But you’re not just a good
corporate role model. You’re a corporation who
understands that investing in education is also a
good business model. It’s good for the bottom line. A lot of your employees were
engineering undergraduates at Oregon State or
Portland State, right? (applause) How many Beavers
here, by the way? (applause) You know my brother-in-law
is coach there. (laughter and applause) Just wanted to — just
wanted to point that out. They’re a young team,
but they’re on the move. (laughter) But here’s what we know. If you can spark a student’s
interest in math or science who would have otherwise
dropped out, you might not just
change a child’s life; you may nurture the talent
that one day discovers the breakthrough that changes
this industry forever. In fact, before I came here,
I read a story about a young University of Oregon graduate. His name is Nabil Mistkawi, and
he joined Intel as an engineer in 1993. After working with so many other
employees who had doctorate degrees, Nabil decided to go
back to school and get his PhD in chemistry at Portland
State University. And thanks to Intel, he was able
to pay for his degree and keep his full-time job. During that time, Intel was
trying to find a faster, more efficient way to
process their microchips, but nobody could figure it out. And they asked at least eight
other companies and research labs for help. Some said it couldn’t be done. Others worked on it for
nearly a year with no success. And so they asked Nabil if
he wanted to give it a shot. Within three days
— three days — he came up with a solution that
is now saving this company millions of dollars a year. And I will not embarrass myself
by trying to explain what his answer was — (laughter) — and most of you probably
know how it works anyway. (laughter) The point is, an investment in
education paid off in a big way — for Nabil, for Intel, for
the millions of workers and consumers who benefited
from that discovery. So for all the daunting
statistics about our educational failings as a nation, for
all the naysayers predicting America’s decline — you’ve
been hearing them lately — stories like this give me hope. Stories like these give me
confidence that America will win the future. We know what works. We know how to succeed. We know how to do big things. And all across this nation —
in places just like this one — we have students and teachers,
local leaders and companies, who are working together
to make it happen. When it comes to competing with
other nations for the jobs and industries of the future, we
are all on the same team — the American team. And if we start rowing in the
same direction, I promise you, there is nothing that
we cannot achieve. That’s what you’re
proving here at Intel. That’s what you’re proving in the
schools and colleges of this state. That’s what America will prove
in the months and years ahead. Thank you, guys. God bless you.