Intel's chief executive Andy Grove has issued a stern warning to Japan that cutting investment in IT technology would affect the economic health of the country.
Speaking on a visit to Tokyo, Grove noted that PC sales in Japan had fallen in the last year and said that continuing cutbacks or slowdowns "have very dangerous ramifications".
According to Grove, economic growth in Japan depends on the health and welfare of its IT infrastructure. Grove made similar comments in Europe two years ago when PC sales were not showing the growth that he and Intel would like, but without the backdrop of Japan's current economic recession.
According to Grove, Dataquest figures show that the country only invested half as much as the US, taking into account their different GDPs.
He claimed that Japanese figures, which showed that sales of PCs had fallen for the first time in five years, were partly as a result of an expensive telecomms infrastructure, with national operator NTT charging too much for local networks, hence slowing down usage of the Internet.
He told journalists at a press conference that Intel did not expect to show any growth in profits in its second financial quarter because large PC vendors still had considerable stock. If there were a recovery in the position, he said, it was likely only to happen during the second half of the year.
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