Intel Puts 557K SF San Jose R&D Campus on Market

US semiconductor giants—who have been lining up to plan mega-projects for new chip fabs in the US funded by an infusion of $52B from the federal government—are not immune to the tech sector slowdown that has spawned thousands of layoffs and reductions in office footprints.

The largest US chipmaker, Intel, is listing for sale its 25-acre San Jose office and research campus as part of a $3B cost-cutting campaign that includes layoffs.

The price for what is known as the Innovation Campus, located at 101 Innovation Drive, has not been disclosed, according to a report in the Silicon Valley Business Journal. According to public records, the value of the property is $193M.

The Santa Clara-based semiconductor giant said in a marketing brochure from property advisor Colliers that the four-building campus includes 500K SF of office space, 57K SF of research labs and parking space for 800 cars.

The deal would include a leaseback by Intel on all four buildings at the Innovation Campus of one or two years duration, according to the report.

“As a hybrid-first company, we are continuing to assess and optimize our space utilization to create more vibrant workspaces for our employees when they are on-site, while also achieving cost reductions,” an Intel spokesperson said, in a statement given to the SVBJ.  “As such, we will consolidate Intel’s San Jose Innovation Campus with our Santa Clara Mission Campus.”

Intel announced a $3B cost-cutting program in October. Last month, the company announced a round of layoffs that includes 61 employees at the Innovation Campus.

In January, Intel listed its 61-acre campus in Austin for an undisclosed price and said it was canceling plans to build a $700M lab in Hillsboro, OR.

Last fall, Intel broke ground on what will be the crown jewel of the US effort to obtain hegemony—or at least independence from Asian producers—on semiconductor manufacturing, a $100B complex on 1,000 acres in Licking County, OH, about 50 miles from Columbus.

With President Biden in attendance in September, Intel started construction on a $20B semiconductor plant, the first phase of the project.

Intel said the initial phase of the Ohio chip fab is expected to create 3,000 Intel jobs and 7,000 construction jobs. However, the semiconductor industry has been struggling to find enough qualified workers to build so many advanced plants in the same timeframe.

In addition to the $20B investment in Ohio, Intel is also planning a $20B expansion of its largest US chip-making complex in Arizona as vies with Taiwan-based TSMC, the world’s largest contract chipmaker, and the current no. 2, the South Korean electronics conglomerate, Samsung.