Philippines can't afford Intel inside

Income tax holiday not enough

A report in the Philippine Star said that Intel plans to build a fab on the archipelago will come to nothing because the government cannot afford to build additional infrastructure. According to the report, which can be found on the Web here, the Philippine government's plans to attract Intel by providing tax incentives will not be enough, because the cost of building the necessary waste management facilities will be prohibitive. Intel has a policy of "mirroring" its fabrication plants -- meaning that a fab in Dublin is the spitting image of a fab in Albuquerque. This, incidentally, is why it is so difficult for Intel to immediately shift to new process technologies, rather than do so in stages. For example, moving to .13µ (micron) copper technologies is far from trivial for Intel, and means vast capital investments. The loss of the $2 billion investment will be a blow to the Philippines, but the local newspaper reports that the Estrada administration is resigned to the loss. It also means that there are likely to be other inward investment opportunities for other Far East countries. ®

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