Metropolis Opinion

Intel Co Goes to Taiwan

Couple years before, I heard gossip about Microsoft will invest their money in Indonesia but the plain was stop because Indonesian government declined the offers. The government claimed that they still focus on agriculture and industry-agriculture, didn’t interest to Intel Co offering.

Today, we have good news for Taiwan and bad new for Indonesia. Intel Co decide to invest in Taiwan around $ 500 Million USD and not in Indonesia. Suppose that $ 500 Million enter to Taiwan, and also transfer technology such as input (machine, Skill Labor, Land). While the government has devise, their labor also get advantages especially skill labor.

In economic perfective and theory, Investment means Money. If Intel comes to Taiwan with $ 500 Million, the Government (destination) gets more than $ 500 Million. Intel does like others company, goes to the source and efficiency. Investment in outside, means Intel (others companies calculates that they can pay less to the local labor, pay less for land rent, facilities, tax).

Another opinion said that Foreign Direct investment means closer to consumers. Intel Co invests in Taiwan means efficiency in shipping, so the Average Cost will lower. Final goal is increase their market segment.

To read about the news, Intel to invest $ 500 Million in Taiwan, follow the link.  What does Intel  produce  in  Taiwan?