Intel announces its own $3.5 billion stimulus package for technology

Intel Capital, the company’s global investment organization, will invest $3.5 billion in U.S. technology companies over the next two years, Intel CEO Paul Otellini announced Tuesday in an address at the Brookings Institution in Washington.

It also is joining 16 other companies, including Microsoft, Google and Yahoo, in promising to increase hiring goals in 2010 to create 10,500 new jobs for college graduates. U.S. and foreign citizens would be eligible for these jobs.

Otellini said the effort to support growth-oriented industries represents a commitment to “significantly increase jobs available this year for recent college graduates.”

He said the initiative would add $1 billion in wages and benefits to the economy, and tied it to a need to spark an economic recovery in America.

Otellini said the initiative would create “the right environment for new thinking and breakthrough innovations.”

The effort comes as Congress and the White House continue to try to take action to stem the country’s 9.7 percent unemployment rate. The Senate on Monday voted to move forward on a $15 billion jobs bill that includes a tax credit for firms to hire new workers.

Otellini said he would not favor a new stimulus bill, and he criticized the spending in the $787 billion stimulus approved last year as being too spread out. But he said that bill staved off an economic meltdown that would have devastated the economy.

Twenty-four venture capital firms have committed to support the new alliance. Otellini singled out Advanced Technology Ventures and Braemar Energy Ventures as companies that have agreed to provide investments in clean technology, information technology and biotechnology companies over approximately two years.

Otellini contrasted the business environment in America with a more friendly approach overseas. He praised other countries for measures taken to promote economic growth.

“Over the next three years China, India and South Korea will invest three times the amount we do in clean-energy technologies. Taiwan is the undisputed center for PC design and innovation, exporting the computers it builds to the rest of the world,” he said.

Otellini pointed toward Intel’s investments in math and science education as an idea that America could emulate.

“Our Intel Teach program has already trained more than 7 million teachers worldwide and more than 350,000 in the U.S. The result is improved critical thinking, research and problem-solving skills that students need to succeed in the jobs of the future.”