What could have been worse for Philippines’ tech industry than Intel Corp., the world’s top chip maker is considering pulling out of the country. Intel’s factory in Cavite which employing more than 3,000 people, is Intel’s second offshore assembly operations centre in Asia and also serves as a test site.

According to Intel source, they invested around 1.51 billion dollars in the country while high power costs are a problem in the Philippines. According to many industry experts this is part of an eventual pullout from the Philippines.

Though according to Intel spokesman it will take at least six months for Intel to decide whether to keep on running the factory, but as you can guess there is nothing for certain here. Intel is one of the biggest investors in the Philippine electronics industry. Electronics are the country’s top export, accounting for two-thirds of goods shipped overseas.

Rumours have been circulating 2005 that Intel had already made a decision to pack up and leave the Philippines after the year 2010. The rumours started to turn into reality in 2006 when Intel inaugurated a US$605-million test and assembly plant in Ho Chin Minh City in Vietnam. And also when Cavite plant didn’t receive any part of Intel’s US$1 billion investment plan for Asia in 2006, you can start to get the feeling.

In an interview Intel Chairman Craig Barrett said the company considers "political stability" as a major factor when making investment decisions and singled out Vietnam as a favourable investment climate.

So as you can see Intel’s pullout will be caused for two reasons-(1) for god forsaken high energy cost (2^nd highest after Japan) (2) Philippines political rumble.

If Intel does finally pull out from Philippines this will be huge blow to the Philippines, where the electronics market, which encompasses semiconductors the country’s largest export earner. Other foreign companies such as Texas Instruments who followed Intel into Philippines might as well follow out of the country.

So more unemployment, export earning lost, lost foreign investment while countries politicians busy interchanging mud at each other or smoking Cuban cigar seating on their fat arse.