By IRMA ISIP

Chip giant Intel Corp. has cited high cost of power in the Philippines as a concern in doing business here.

Trade secretary Peter B. Favila said he has discussed this with Intel chairman Craig Barret at the sidelines of the World Economic Forum in Davos, Switzerland late last month.

"We’ve met in Davos, we met with the chairman (of Intel) and they reiterated their request for assistance in bringing down the cost of power," said Favila.

He said President Arroyo has given instructions for the Department of Energy to draw up the mechanics in slashing electricity cost which is an ongoing concern of industries relying heavily on power.

He said Arroyo has made a three-pronged approached, generation, transmission and distribution.

He said the National Power Corp., National Transmission Co. and the Manila Electric Co., in charge of these sectors, respectively, are coordinating these efforts.

But he added that reducing cost of power which took center stage at the Philippine Energy Summit last week, would be done in stages starting off with those with high-load factor, trickling down the line.

"We accept the fact that we do have high cost of power, and we have to be responsive in addressing this concern as this is one way of attracting more investments in the country," Favila said.

Favila dismissed as rumors earlier reports of Intel considering to shut down operations here.

Intel in the Philippines has two facilities with the manufacturing plant for assembly and test, product design, assembly

technology development among others, located in Cavite, Intel Manila is a sales and marketing office that serves the growing PC technology in the Philippines on many levels. The Manila office is home to Intel’s Asia Pacific Customer center.

Intel Cavite is the first American multinational company and the first semiconductor company in the Philippines.

Intel Philippines has been the nation’s leading exporter for the last five consecutive years and has Intel has invested more than $1 billion. It employs over 6,500.

In Davos, President Arroyo has invited Intel to consider the Philippines as a site for the company’s revolutionary remote diagnostics medical project.

The President told Barret that if Intel can undertake the remote diagnostics program in Lebanon, they can easily do it in the Philippines because of the country’s existing ICT infrastructure.