Intel saves 7,000 U.S. jobs

Intel Corp. just announced a plan to spend $7 billion to upgrade its manufacturing in the United States, a move that could retain or create about 7,000 jobs. That's welcome news in an economic climate that is seeing nearly daily layoffs or company closings.

CEO Paul Otellini outlined plans for facilities in Oregon, Arizona and New Mexico--and none overseas. There are plenty of reasons for the United States to be the place to do it. Frank Gillett, an analyst at Forrester Research Inc., said Intel had to move ahead with its plans for new processors and not break the schedule by shipping work overseas. The new chips, code-named Westmere, won't appear in servers until early next year, and by then, business spending on technology may be rebounding. "It would be hard to argue that they shouldn't be making this investment," Gillett said.

Intel received offers from other countries for millions of dollars in incentives, but Otellini said no offer could offset the capability the company has in the United States for quality assurance.

For more on Intel's story:
- check out this Infoworld.com article

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