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Intel, venture firms will invest $3.5b to spur tech job growth

CREATING TECH JOBS “We cannot afford to let our future scientists and engineers sit idle after graduation,’’ Intel chief executive Paul Otellini said. CREATING TECH JOBS
“We cannot afford to let our future scientists and engineers sit idle after graduation,’’ Intel chief executive Paul Otellini said.
By Ian King
Bloomberg News / February 24, 2010

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SAN FRANCISCO - Intel Corp., the world’s largest chip maker, and a group of 24 venture capital firms will invest $3.5 billion in US technology companies over the next two years to spur domestic job growth.

The effort includes a new $200 million technology fund by Intel Capital, the company’s investment arm, Intel’s chief executive, Paul Otellini, said in a speech yesterday at the Brookings Institution in Washington. The investments will be focused on information technology, biotechnology, and so-called clean technology.

Intel takes stakes in companies whose technology can be used to increase future processor sales. Intel’s microprocessors run about 80 percent of the world’s personal computers.

Otellini said Intel is also part of a group of companies that agreed to increase hiring of US college graduates, creating as many as 10,500 jobs in 2010.

“We cannot afford to let our future scientists and engineers sit idle after graduation,’’ Otellini said.

Intel Capital has invested about $6.2 billion over the past 20 years in US companies, according to Intel. The company, which competes against Advanced Micro Devices Inc., spends about $5 billion a year on research and development.

US semiconductor companies, including Intel, have lobbied the government to raise standards in math and science education, increase funding for research at universities, and cut corporate taxes to promote domestic investment.

Intel, which gets three-quarters of its sales overseas, has plants in the United States, Israel, and Ireland and is building its first in China.

Advanced Technology Ventures, Kleiner Perkins Caufield & Byers, Menlo Ventures, and Mohr Davidow Ventures are among the firms that will contribute to the $3.5 billion of investments, Intel said.

In Nasdaq trading, Intel shares fell 49 cents to $20.38.