INTEL INVEST BILLIONS IN US

       Intel plans to invest $6 billions to $8 billions to upgrade manufacturing plants in the United States and to build a new one in Oregon, adding as many as 1,000 new high-tech positions and thousands of construction jobs.

       Intel, which is based in Santa Clara, California, has historically used its substantial cash reserves to invest in manufacturing plants through economic downturns, advancing its technology while rivals struggled to stay afloat. It is a strategy that has been largely sucessful. Indeed, the company reported better-than-expected earnings on a sharp increase its revenue.

       A $7 billions investment by Intel about 20 months ago was focused on making chips using 32-nanometer process technology. Paul S. Otellini, Intel's chief executive, vowed at that time to invest in chip factories in the United States rather than send the business abroad.

       In recent months, Mr. Otellini has railed against incentives and other practises that make it far cheaper for companies to build and operate chip plants abroad. He has estimated that it costs $1 billion less to operate a chip factory overseas than in the United States, not because of lower labor costs but because of incentives from foreign governments.

       Intel generates three-fourths of its revenue from overseas business, but three-fourths of its chip-making employees are in the United States.

       Mr Krzanich said in a conference call that Intel had benefited from the large manufacturing base in the United States despite the potential cost savings of manufacturing abroad. He said the plants were a great asset, but also because the employees were highly skilled. 

       The upgraded plants will pave the way for higher-performing and sleeker electronic devices by allowing Intel to produce a new generation of 22-nanometer chips. The new Hillsboro, Oregon, plant-Intel's first new plant since 2007-is scheduled to start  production in 2013.