LONDON – Paul Otellini, the president and CEO of Intel Corp., has called for the U.S. government to provide tax concessions for companies that build factories in the United States, according to a Reuters report.
Otellini, speaking during a presentation at a Council on Foreign Relations event in New York on Tuesday (Oct. 5), said that the concessions, either in the form of tax credits or tax holidays would help create jobs and would make the United States competitive with other countries, the report said.
Building and operating a wafer fabrication facility for semiconductors can cost up to $1 billion more in the United States than in some other countries, with 90 percent of the difference being down to tax and incentives rather than labor cost, the report referenced Otellini as saying.
"We should offer tax credits or a five to 10 years tax holiday to companies, domestic or foreign, that want to set up factories in the U.S.," Reuters quoted Otellini as saying.
The majority of Intel's wafer fabs are in the U.S. It also has fabs in Ireland and Israel. Intel's latest wafer fab is under construction in Dalian China and government incentives were part of the reason, the report quoted Otellini as saying.
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