Intel Corp, the world's largest computer-chipmaker, has few reasons to make future investments in California without regulatory changes, chief executive Craig Barrett said.
"There is not much incentive at this time," he said at a conference in Orlando, Florida, sponsored by computer market researcher Gartner Inc.
California needs to change state laws, such as its "disaster" of a workers' compensation system, Barrett said.
Barrett hasn't expanded Intel's remaining California chip factory since 1999 and the "overwhelming majority" of the US$22.4 billion budgeted for plants and equipment over the past four years has been spent outside the state, Intel spokesman Chuck Mulloy said.
Intel employs about 12,000 employees in California, second to Oregon, where about 15,000 people work.
"California has a 20-year history of anti-business legislation," said Barrett, whose company is based in Santa Clara, California with a factory there and research labs in Folsom.
The state also fails to appreciate the contributions of the high-technology industry, he said.
Among the issues concerning Barrett and other California business leaders is workers' compensation, which was a key issue in this month's recall of Governor Gray Davis.
The Democrat, after facing criticism that California premiums were the highest in the US, signed a bill last month to lower them by 18 percent.
California's faltering economy became a central issue in the 10 1/2-week political race ahead of the recall election.
Arnold Schwarzenegger, who won the office on Oct. 7, said higher workers compensation costs, regulatory burdens and taxes were causing businesses to flee a state that on its own would rank among the world's biggest economies.
"California is the fifth-largest economy in the world and we got real issues," said Carleton Fiorina, the chairman and chief executive of Hewlett-Packard Co who is helping Schwarzenegger find staff and assess the state's business climate.
She spoke at the Gartner Inc forum.
"California has made a number of choices in the past several years that have negatively affected its competitiveness," Fiorina said.
Two weeks ahead of the election, the 64-year-old Barrett was the lead signatory on a paid advertisement in newspapers in which executives, including Fiorina, complained that the state "has become one of the worst places to do business not only in the US, but also in the world."
Intel paid for the newspaper advertisement.
Schwarzenegger said legislation passed this year doesn't do enough to lower the cost of workers' compensation.
The governor-elect said he will take steps to close loopholes and eliminate incentives that encourage fraudulent claims.
TWEET CONFIRMED: The US’ Morgan Ortagus backed up Taiwan, saying China only admitted that human-to-human transmission was possible as late as Jan. 20 Taiwan warned the WHO and China about possible human-to-human transmission of the new coronavirus at the end of last year, but the global health body did not make it public, the Ministry of Foreign Affairs said yesterday. Department of International Organizations Director-General Bob Chen (陳龍錦) made the remark at a news briefing in Taipei, when asked about statements made by US Department of State spokeswoman Morgan Ortagus. “Dec. 31— that’s the same day Taiwan first tried to warn WHO of human-human transmission. Chinese authorities meanwhile silenced doctors and refused to admit human-human transmission until Jan. 20, with catastrophic consequences,” Ortagus wrote on
ON THE LOOKOUT: A Lockheed EP-3 reconnaissance plane was yesterday seen flying southwest of Kaohsiung, according to Twitter account ‘Aircraft Spots’ A Twitter account that tracks military aircraft movements has indicated an increase in US military activity near Taiwan, coinciding with an increase in Chinese military activity in the area. Planes from the US Seventh Fleet have been sighted frequently above the South China Sea in the past several days, and a US Navy EP-3 reconnaissance plane was seen flying close to Taiwanese airspace southwest of Kaohsiung yesterday, according to posts by the Twitter account Aircraft Spots. The EP-3 was seen circling above the same area, Aircraft Spots said, adding that other planes from the fleet were seen in the past few days
A Taipei resident who had breached his home quarantine order was found on Tuesday night in an Internet cafe and fined NT$1 million (US$32,976), Taipei Deputy Mayor Vivian Huang (黃珊珊) said yesterday, as the Taipei City Government announced a short-term COVID-19 relief plan. Huang on Tuesday afternoon publicized the name of the man, Chen Tse (陳冊), who on Saturday last week returned from Beijing and was ordered to undergo 14-day home quarantine. However, city monitoring officials were unable to contact him by mobile phone or at his home. Chen was found by police at an Internet cafe on Nanyang Street, Huang said
ACCLIMATION: Chen Shih-chung said that only ‘soft’ policies have been carried out so far, but ‘hard’ measures would be implemented if the coronavirus situation worsens The Central Epidemic Command Center (CECC) yesterday recommended that indoor events of more than 100 people and outdoor events with more than 500 people should be canceled, as 19 new imported cases of COVID-19 were announced, bringing the total number in Taiwan to 235. “The center recommends that from now, indoor events of more than 100 people and outdoor events with more than 500 people should be suspended to reduce the risk of COVID-19 community transmission,” said Deputy Minister of the Interior Chen Tsung-yen (陳宗彥), deputy head of the center. Event organizers should refer to six indicators listed in the response guidelines