Intel Says It Will Add 750 Jobs at Its R&D; Facility in Folsom

Intel Corp., the world’s largest chip maker, plans a $35-million expansion of its research and development site near Sacramento, adding 750 jobs there over the next few years.

The expansion is a “vote of confidence” in the site’s future as a major Intel research and development center, said Craig Barrett, Intel’s executive vice president and chief operating officer.

In April, Intel announced plans to build a $1-billion addition to its factory near Albuquerque, N.M., mainly to build the Pentium microprocessor, Intel’s newest and most powerful personal computer chip. The decision was seen as a blow to efforts to revive California’s economy and led to new criticism of the state’s business climate.

The Folsom location already employs 2,500 on a 236-acre site. Intel also has research and development centers in Santa Clara, Calif.; Oregon; Arizona, and Israel.

The state, county and local governments gave Intel about $8.5 million in tax breaks and other incentives, mainly road improvements, Intel said. Intel plans to begin the new 160,000-square-foot building next year and estimates it will be finished in 1995. About 200 people will be hired when the building opens, the company said, the rest over the next two years.

Intel is still shopping for a place to put its next $1-billion factory, and the Folsom location is a possibility for that, the spokesman said.

However, “there are still some issues” outstanding before California moves “high in the running” on that plum, an Intel spokeswoman said. Among others things, she cited Intel’s hope that California will repeal its manufacturing equipment tax, speed up environmental permitting and revamp workers’ compensation.