Intel to be paid to limit fab jobs

Agreement required for $200 million Oregon tax break

Officials in Oregon's Washington County, home of four of Intel's key US manufacturing sites look set to approve a $200 million tax-break package for the chip vendor. However, there's one proviso for Chipzilla, though: don't create too many jobs. The plan will contain a clause forcing Intel to pay $1000 for every manufacturing job is creates over a 5000-staff limit. Intel currently has 4000 Oregonians on its manufacturing payroll. The tax-break plan comes as Intel is gearing up to convert its US plants to a 0.18 micron fab process. Essentially, the deal limits the amount of property tax Chipzilla will have to pay to the County. Still, Intel is paying an estimated $12.5 billion to modify its plants, so what's effectively a $200 million grant won't make much of an impact, but it's certainly not unwelcome. ®

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