Computer chipmaker Intel currently invests in roughly 300 Technology startups, and this week, many representatives of those young companies traveled from around the world to Huntington Beach to build partnerships with industry executives and other entrepreneurs and investors.
The 13th annual Intel Capital Global Summit is an invitation-only Networking event hosted by Intel Capital, a division of the Santa Clara-based computer chipmaker that handles mergers and acquisitions, and investments in external companies.
Speaking to attendees of the three-day event on Tuesday, Intel Capital president Arvind Sodhani announced new investments in 10 companies. Six of the companies develop technologies for mobile devices, while four focus on cloud-based products or services.
The new additions to the Intel portfolio came from six different countries. During an interview at the summit Dr. Tom Campbell, Dean of the School of Law at Chapman, asked Intel CEO Paul S. Otellini to discuss another aspect of their foreign strategy: the company’s decision to build assembly/test sites in China instead of the United States. Otellini said China is the world’s largest market for computers, and that Intel opened there for the cost benefits, but remains there for their capacity.
But according to Otellini, there now is a “full circle opportunity to create jobs in the U.S., because the cost savings are no longer sufficient.” He explained that costs associated with employing a mid-level engineer in China or India are the same as here, but that it costs more to hire a first or second line manager in those countries than it does to hire domestically.
Otellini wasn’t as optimistic about California.
When Campbell asked for his outlook on the state, Otellini replied that Intel hasn’t added a job in California in 10 to 12 years. They closed their last factory in the state six or seven years ago. Otellini cited negative feedback from employees who have a hard time buying houses. “They have complaints about schools. They have complaints about infrastructure and traffic, and oh by the way, the highest taxes in the nation. Apart from that, it’s the greatest place to live.”
As for Orange County, after playing host to Intel’s annual gathering for five consecutive years, Sodhani said the conference’s approximately 1,000 guests have outgrown Huntington Beach. Next year’s summit will be held in San Diego, where they’ve found a location that can accommodate up 2,000 attendees.
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