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CNET carried the president of Intel's comments on business in the US.

Especially telling is "Take factories. "I can tell you definitively that it costs $1 billion more per factory for me to build, equip, and operate a semiconductor manufacturing facility in the United States," Otellini said.

The rub: Ninety percent of that additional cost of a $4 billion factory is not labor but the cost to comply with taxes and regulations that other nations don't impose. (Cypress Semiconductor CEO T.J. Rodgers elaborated on this in an interview with CNET, saying the problem is not higher U.S. wages but antibusiness laws: "The killer factor in California for a manufacturer to create, say, a thousand blue-collar jobs is a hostile government that doesn't want you there and demonstrates it in thousands of ways.")"

For the full article:

http://news.cnet.com/8301-1357...8.html?tag=rtcol;pop
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You did click on the link to the article where the quote came from and saw that he was talking about LOCAL government in California.

quote:

You'd be insane to open a manufacturing fab in California. You need a big piece of land, you need freeway access to it for your employees, you need water and power, and you need a local government that wants you there. Then you need a local or several local schools to provide you with a relatively large number of trained people to work in the plant. You obviously want to pay wage rates that make you competitive in the world. What I described is not California.

Why not?
The wage rate is one problem, but it's surmountable, because the cost of a wafer is only 15 percent labor. So if I paid a 20
percent premium for labor, the wafer would only cost 3 percent more. The killer factor in California for a manufacturer to create, say, a thousand blue-collar jobs is a hostile government that doesn't want you there and demonstrates it in thousands of ways, through bureaucrats and regulations.

Ayn Rand said no society can jail an honest man. So if you want to use the power of society on citizens, you have to make normal behavior illegal. The zoning ordinances and environmental ordinances are a classic example. I guarantee you that nobody truly understands them, and no plant can meet all of them simultaneously. So you end up with a dynamic that there are no laws, and there are no rules, and you're completely at the mercy of the local government, and they don't want you there. And they tell you that. So you go away. That's why there's no silicon left in Silicon Valley.


The next paragraph went on to talk about how Minnesota and Texas was more welcoming for his fab plants.

the biggest hindrance to new jobs or better technology being implemented in the US is local government. A good example is when a phone company wants to put up a new tower. In a lot of large cities the process can take years thanks to citizens holding up city counsel meetings because they are afraid of it lowering their property value or is bad for their health. If the company wins it's held up in citizen appeals, and if they still win after that the counsel is voted all out.

Think about it. A chip fab uses a lot of water, uses a lot of chemicals, can take a mile or more of land, so on and on. Even though most modern fabs recycle their chemicals and water, and may even generate most of their own power you can guarantee that there would be a not in my backyard committee formed the day after one is announced in most areas of the US.

You can't have it both ways. You want the jobs and innovations, then someone's view is going to be spoiled.
Intel notched a 2.3 BILLION profit in 4th quarter of 2009
quote:
Yo Intel, when your 2008 fourth quarter was one of the worst you ever recorded, it's slightly, just slightly, facetious to go trumpeting an 875 percent improvement in your 2009 fortunes. The self-appointed chipmaking rock star has clocked up $10.6 billion in revenues for the last quarter, which filters down to $2.3 billion in pure, unadulterated, mother-loving profit. That's good and indeed technically nearly nine times what the company achieved in the same period the previous year


http://www.engadget.com/2010/0...2009-company-descri/

2010 Profits.
http://ycharts.com/companies/I...KI3aMCFZNg2godnR53SQ
11 Billion in sales at a 26.82% profit is almost 3 billion in profit.

The story here is that the upper management will carve up this 3 biilion at less than 15% in taxes. So yes, there is no incentive to hire American workers when you can make it overseas, sell it here and pay virtually no taxes.

Now, a 97% tax rates on executive compensation for everything over 5 million would give no incentive for stiffing American workers for the overseas production.
While Intel's upper management does make a fair amount, a lot of it is tied into company stock and incentives. Intel actually puts a pretty substantial amount of it's profits into R&D, which is going to be extremely important as chips are made in smaller nanometers, which are basically at subatomic levels in some products now, but that's getting away from the point of the article. The biggest reason that the US is seeing a tech decline is because we refuse to put money into education, we fight tooth and nail to keep companies from invading our space, and the few companies that still try to keep jobs here we complain that the jobs are going to foreigners.

Even if the corporate tax rate dropped to 18.2% tomorrow they still wouldn't build here due to citizen static, and fear of not having enough workers. Almost no one understands this, or they do and don't want to admit that it's going to take a generation of people to fix. That's our biggest failure, everyone wants a magic bullet when it does not exist.
Intel CEO was paid 14.4 million in 2009, a 16% pay increase from the year before.
Based on the same 40 your work week that's $6091.00 per hour.
Now let me ask you, is anyone worth 6k an hour?
And then there are those who come on here and whizz and moan because a union makes sure that people like this CEO of intel don't starve their workers to death.

http://www.oregonlive.com/busi...rded_16_percent.html
One of their former employees.

quote:
Intel is the premiere propaganda machine. The bad things that people said above are true, especially the fake "mission/values", which you should wear on your body at all times (around your neck, eg).

Intel was one of the first to export jobs to India, to import cheap labor, displacing US workers over time.

The HR organization is dominated by two buds who have been there WAY too long. When Intel was laying off (sorry: REDEPLOYING), these two maintained their two-in-a-box status: two people doing the job of one, while others were let go.

HR is also mostly female. At one point, 70% (may be higher now). Guys: be passive, be team players; otherwise, you will be labeled difficult to work with and passed over for promotions and higher-than-average year-end raises.

The CEO of the company is Bush-like; insiders know it. Research the stock price of Intel over the last few years, and you'll see. While Intel was laying off thousands of employees in 06 and the stock price was plummeting, he raked in nearly 10 mil compensation (see AFL-CIO corporate watch website).

Intel relentlessly talks of globalization, outsourcing, diversity (code for cheap labor), global economy: corporate INVENTIONS, which Intel helped hatch. While it professes to be fair and honest, it is busily setting up shop in Communist China known for human rights violations. Intel speaks with forked tongue, just like its pal in the White House.

You have no job security there: it's about who—not what—you know. At 50, watch out: you will be targeted for "job force reductions". Intel wants young and/or foreign workers:. CHEAP help. How many people have retired from Intel? Ask to see their records.

Label me disgruntled all you want. I know this company, and I know what they did to a lot of good people. I hope somebody takes them on one of these days.


http://www.indeed.com/forum/cm...nuses-Benefits/t7606
A glimpse into the anti-family environment imposed on a company bought by Intel.

quote:
This is an example of hardship and intimidation that Intel has created since inception of their "Intel Culture" at Fab 17. DEC accommodated the daycare needs of employees by offering them flex hours. But Intel who on one hand advertises its value system by telling the employees "Employees are our greatest asset." and "Intel is a great place to work.", requires the families with day care need to take the following steps:

Write couple of letter to explain why there is need for flex hours.
To complete couple of forms.
And if they do not quit or get discouraged, as last intimidation effort, they will give them the following questionnaire to complete or fold.
As part of the exception process to standard hours, individuals making an application should address the following points in their application.

Child care (pre school age or before/after school hours) and Elder Care This is where hours of care are fixed and the employee cannot find alternative care.
Why does your current care provider not allow you to accommodate the established Intel work schedule?
What alternative child care search was done?
How many Day Care alternatives were explored?
Why didn't they work?
Have you considered alternative forms of child care (i.e., center, in-home, or at-home)?
Does the local school offer any programs (assuming child is of school age)?
Have you considered Day Care located closer to work, whose hours accommodate the established Intel work schedule?
Can your spouse or life partner share responsibility for child care drop-off and pick-up?
Do you expect this situation to change based on grade and/or age changes of the child? If so, when?
School Transportation This is where a parent is required to see the child safely to school or to the school bus.
Why does your current situation not allow you to accommodate the established Intel work schedule?
What alternatives have been explored (personal drop off at school, pick up at an alternate location [family member], etc.)?
Does the school offer any kind of early arrival care?
Have pre-care and after-care alternatives been explored?
Can your spouse or life partner share responsibility?
Medical or Disability This is where the employee depends on others or special means to get to work.
Why does your current situation not allow you to accommodate the established Intel work schedule?
What alternatives have been explored?
Why didn't they work?
What a cultural shock this must be for Hudson plant employee.



http://www.faceintel.com/digital.htm
quote:
Originally posted by Jugflier:
Intel notched a 2.3 BILLION profit in 4th quarter of 2009
quote:
Yo Intel, when your 2008 fourth quarter was one of the worst you ever recorded, it's slightly, just slightly, facetious to go trumpeting an 875 percent improvement in your 2009 fortunes. The self-appointed chipmaking rock star has clocked up $10.6 billion in revenues for the last quarter, which filters down to $2.3 billion in pure, unadulterated, mother-loving profit. That's good and indeed technically nearly nine times what the company achieved in the same period the previous year


http://www.engadget.com/2010/0...2009-company-descri/

2010 Profits.
http://ycharts.com/companies/I...KI3aMCFZNg2godnR53SQ
11 Billion in sales at a 26.82% profit is almost 3 billion in profit.

The story here is that the upper management will carve up this 3 biilion at less than 15% in taxes. So yes, there is no incentive to hire American workers when you can make it overseas, sell it here and pay virtually no taxes.

Now, a 97% tax rates on executive compensation for everything over 5 million would give no incentive for stiffing American workers for the overseas production.


The US has the largest corporate tax rate in the developed world. Fine, seize the income of their upper management, then wonder why the taxes you collect go down. The Bush tax cuts resulted in the largest increase in tax income in history. Left wing regressives never under stood logic, let alone math.
"Intel leads U.S. revival as force in manufacturing exports

LOOMBERG NEWS
Published: 9:22 p.m. Friday, May 28, 2010
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WASHINGTON — Intel Corp., the world's largest maker of computer chips, is increasing production and commanding higher prices as an export boom puts American manufacturing at the forefront of the economic recovery.

Intel's factories are operating at 80 percent of capacity, up from a record low of about 50 percent last year in the midst of the recession. The average selling prices of personal computer processors have risen a total of 12 percent over the past two quarters.

Overseas demand for U.S.-made goods from semiconductors to printers is boosting the fortunes of manufacturing, which has shrunk as a portion of the American economy in 13 of the past 14 years. As a result, trade is poised to add to growth for the first time in a post-recession year since World War II, said Morgan Stanley economist Richard Berner.

"U.S. manufacturing has really seen a renaissance of sorts, driven by improved competitiveness and strength in global markets," said Joseph Carson, director of economic research at AllianceBernstein in New York. "Exports have been the key driver of growth. We think it's a new trend."

More at: http://www.statesman.com/busin...tml?cxtype=ynews_rss

Wish Intel had ramped up their production earlier. I'm still waiting for my Droid X.

Juggie would prefer to tax Intel's management into oblivion.

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