Facing their worst economic climate since the dot-com bust in the early 2000s, high-tech companies are treating 2009 with dread — but also with a tinge of optimism if they act smartly.
Already, a few established companies with ample cash reserves are bolstering war chests that will help them snap up innovative start-ups. Cisco Systems has $29.5 billion in cash reserves and last week sold $4 billion more in bonds. Despite 5,000 layoffs, Microsoft plans to do some strategic hiring to fill new jobs supporting Internet search. And that well could involve acquisitions to pick up talented workers.
Companies are looking to improve efficiencies with cutting-edge technology. Intel says it will spend $7 billion over the next two years to build advanced manufacturing facilities in the U.S. The plants would produce faster, smaller chips that consume less energy.
“If we want to see a return of American prosperity, we have no other choice than to invest in creating the future, not merely preserving the past,” says Intel CEO Paul Otellini.
For the rest of the story, Click here… – Source: USA Today