Clive Davis reveals in memoir that he's bisexual

NEW YORK (AP) — Record executive Clive Davis says he's bisexual.

In his new memoir, out Tuesday, the 80-year-old, who is twice divorced, reveals that he had sex with a man in the 1970s. Davis writes in "The Soundtrack of My Life" that he hadn't been repressed or confused during his marriages and that sex with a man "provided welcome relief."

He also writes that he started dating a man from 1990 to 2004, which he says was a "tough adjustment" for his son Mitchell. He says after "one trying year," he and his son worked things out. Davis is the father of three children.

Davis is the chief creative officer of Sony Music Entertainment. He writes that he's been in a "strong monogamous relationship" with a man for the last seven years.

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2nd major hotel for McCormick Place

The agency that owns McCormick Place announced Tuesday that it will build a second hotel near the convention center complex, with plans calling for a 1,200-room facility that can serve as a headquarters for trade shows and conventions.

The Metropolitan Pier and Exposition Authority, also known as McPier, said it is acquiring land for the project, which will cost $400 million to build and will be located immediately west of the convention center's newest facility, the West Building. A skywalk would connect the two.

McPier is in talks with the site owners, affiliated with McHugh Construction Co., for the L-shaped parcel, said Jim Reilly, chief executive of the state-city authority.

"We think that will work out," he said. "If for some reason it doesn't, the city is prepared to use its eminent domain power. But we hope we won't have to do that."

He declined to comment on the potential deal cost, but said it would be a fraction of the construction cost. McPier and the site owners are discussing the possibility of a land swap, in which McPier would trade some land it owns on a nearby block.

A representative of McHugh Construction could not be reached for immediate comment.

The McPier proposal comes as key parcels just north of the West Building are moving toward auction. Those sites have been viewed as potential locations for more hotels and entertainment, and possibly an arena for DePaul University's Blue Demons basketball team.

Reilly declined to comment on where things stand in talks with DePaul. But he said McPier's latest hotel proposal would not stand in the way of other hotels being developed nearby, noting a 2009 study found potential demand for up to 8,000 hotel rooms in the area. The area will need some lower priced options too, he said. 

"I don't see this as competing (with other projects), he said. "This will give us 2,400 rooms, and we could easily use more than 2,400 rooms."

McPier owns the 800-room McCormick Place Hyatt Regency, which is undergoing a 460-room expansion due to be completed this summer at a cost of nearly $90 million.

The two hotels will operate cooperatively, McPier said. 

The latest project, to be between Indiana and Michigan, along the south side of Cermak, was announced jointly with Mayor Rahm Emanuel and Gov. Pat Quinn. Both said, in prepared statements, that the project would stimulate the local economy and make the city more competitive in the race for trade shows.

McPier will immediately seek proposals from design/build teams, hotel operators, and financial advisers and underwriters, Reilly said.  Construction should begin in the last quarter of 2014, with completion set for the end of 2016, he said.

As it did with its first hotel, McPier intends to finance the project in the construction phase through revenue bonds that would be paid back by hotel operating proceeds. At a later stage, it may add more financing through its expansion project debt structure, in which bonds are paid back with tourism taxes.

The hotel will have a Michigan Avenue address, which will connect it to the downtown in visitors' minds, and which should help foster entertainment development in the surrounding neighborhood, a historic strip known as Motor Row, Reilly said.

"I have long said I want there to be nightlife (in the area)," he said.

The hotel also would be two blocks from a planned new station on the CTA's green line, which should add to its appeal, he said.

International trade show visitors "love using mass transit," he said.

kbergen@tribune.com | Twitter@kathy_bergen

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Father recalls poignant final moment with slain daughter

The father of a Clemente High School student killed Friday spent Monday morning putting up a memorial to his daughter at the North Side school. Later that morning, he remembered one of the last things he did with his daughter.

It was Friday afternoon, Jose Colon Jr. recalled, and he and his daughter Frances were watching President Barack Obama speak at Hyde Park Academy on the city's South Side. The topic of that speech: The same kind of gun violence that would end his daughter's life later that night.

"She said, 'About time they do something with the gun thing,' " he said, adding that Obama and other elected officials need to "make these people more afraid" to shoot each other by making tougher penalties.

The 46-year-old man wasn't optimistic the president's proposals would come to fruition soon enough.

"It's not over," he said. "This is just the beginning. Wait until summer comes along."

Frances Colon, of the 2900 block of West Armitage Avenue, was shot about 7:05 p.m. Friday in the 1100 block of North Pulaski Road, according to police. She was taken to Mount Sinai Hospital, where she was pronounced dead at 8:16 p.m.

Colon is the third student at Roberto Clemente to be killed this school year, said Clemente's principal Marcey Sorensen.

Rey Dorantes, 14, of the 2400 block of West Augusta Boulevard, a freshman at the school, was shot and killed on Jan. 11. His death came about a month after another Clemente student, Jeffrey Stewart, 16, of the 5200 block of West Race Avenue, was shot and killed on Dec. 9.

"I'm sick of it," said Sorensen. "How many more kids have to die before we do something?"

The school has mobilized a crisis team to support students and staff. Despite the deaths, Sorensen said the students have been coping well.

"Our kids live in fear and because of that, they are incredibly resilient," she said.

Colon was a senior who was preparing to attend college, said Sorensen. She was previously selected as the student of the month, a recognition for students who display good behavior, Sorensen said.

Clemente sophomore Noel Roman said this morning he's not surprised his high school has had to deal with the recent string of fatal shootings.

"Considering the neighborhood, no," he said. "It's barely getting better."

Roman said he didn't know Colon personally, but they shared some friends.

"It's like, 'I was walking with her one day and now she's gone,' " he recalled one of his buddies telling him.

psvitek@tribune.com
Twitter: @Patrick Svitek

nnix@tribune.com
Twitter: @nsnix87

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Huawei denies work in field linked to U.S. death in Singapore

SINGAPORE (Reuters) - Chinese telecommunications company Huawei said on Monday it had not worked with an institute in Singapore on any projects in the specialist field of an American engineer who died mysteriously last year shortly after leaving the institute.

Britain's Financial Times said on Saturday that Shane Todd had been working on "what was apparently a joint project" between Singapore's Institute of Microelectronics, or IME, and Huawei shortly before he died last June.

His parents have said he was murdered because of his involvement in the project, which they say involved exporting sensitive military technology to China.

IME declined immediate comment.

Singapore police said they were still investigating the death of Todd, 31, and would submit their evidence to a coroner. Singaporean pathologists concluded in an autopsy last June that he died by hanging in his Singapore flat.

"IME approached Huawei on one occasion to cooperate with them in the GaN field, but we decided not to accept, and consequently do not have any cooperation with IME related to GaN," Huawei said in a statement.

Todd's area of expertise was Gallium Nitride (GaN), an advanced semiconductor material which has both commercial and military purposes. It is used in things from blue-ray disc players to military radars.

Huawei said that the development of GaN technology was commonplace across the telecommunications industry.

Reuters reviewed evidence the family presented supporting its theory a few weeks after his death, including emails, other documents and photographs.

Interviews with the family, colleagues and friends revealed conflicting views on Todd's state of mind before his death, the nature of his work and how he died.

Colleagues said that he was increasingly depressed in his last few months, but said that his concerns appeared to centre on a sense of failure about his work, and an ambivalence about returning to the United States.

Researchers in unrelated fields have also questioned how, if his work was so sensitive, he was able to take home computer files from his office. His family retrieved a hard drive which included work files in his flat.

IME is part of a network of research institutes managed by government-run Agency for Science, Technology and Research, or A*Star.

A former A*Star researcher now working in the United States pointed out that IME and other A*Star institutes were not military research organizations.

"AFRAID"

At the heart of the family's theory is that Todd was concerned for his safety because of a project with a Chinese company. They believed, through information from his colleagues and from his computer files, that the company was Huawei.

Reuters can't independently corroborate their views about the role of Huawei or the circumstances of Todd's death.

Huawei is one of the world's largest telecommunication equipment companies, but has been blocked from some projects in Australia and deemed a security risk by the U.S. congress on the grounds that its equipment could be used for spying.

Huawei has routinely denied such accusations and has said it is not linked to the Chinese government.

Todd's parents said in interviews in July that Singapore police and IME had failed to properly investigate his death after his body was found hanging from a door in his Singapore apartment on the evening of June 24, two days after he quit IME.

Singapore police say they have handled the case as they have handled other cases, and their procedures follow high international standards. They said in such cases of unnatural death, "no prior assumptions" were made about the cause.

The parents did not immediately respond to emails requesting comment on the Financial Times report but Todd's mother, Mary, said in a telephone interview with Reuters last July that he had been scared.

"I had been talking to him for months for at least an hour every week and he told us he was afraid of being murdered because of his contacts with the Chinese government," she said.

"He quit his job because of it."

Huawei declined to say whether they had been working on other projects with IME. Colleagues said shortly after Todd's death that he had told them at one point he had been working on a project with Huawei but that it was not sensitive or high-level in nature.

One described it as carrying out "measurement test reports" of semiconductors.

The Financial Times said that Todd had been involved in proposing a joint project with Huawei. While it did not say whether the project was approved, it quoted his parents as saying that subsequently he complained to them of being asked to do things with a Chinese company he did not identify that made him uncomfortable.

(Additional reporting by Kevin Lim; Editing by Robert Birsel)

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Jerry Buss, Lakers' flamboyant owner, dies at 80

LOS ANGELES (AP) — Jerry Buss, the Los Angeles Lakers' playboy owner who shepherded the NBA team to 10 championships from the Showtime dynasty of the 1980s to the Kobe Bryant era, died Monday. He was 80.

He died at Cedars-Sinai Medical Center in Los Angeles, said Bob Steiner, his assistant.

Buss had been hospitalized for most of the past 18 months while undergoing cancer treatment, but the immediate cause of death was kidney failure, Steiner said. With his condition apparently worsening in recent weeks, several prominent former Lakers visited Buss to say goodbye.

"The NBA has lost a visionary owner whose influence on our league is incalculable and will be felt for decades to come," NBA Commissioner David Stern said. "More importantly, we have lost a dear and valued friend."

Under Buss' leadership since 1979, the Lakers became Southern California's most beloved sports franchise and a worldwide extension of Hollywood glamour. Buss acquired, nurtured and befriended a staggering array of talented players and basketball minds during his Hall of Fame tenure, from Magic Johnson and Kareem Abdul-Jabbar to Bryant, Shaquille O'Neal and Dwight Howard.

"Condolences to the Buss family," tweeted James Worthy, the Lakers' Hall of Fame forward. "Dr Buss was not only the greatest sports owner, but a true friend & just a really cool guy. Loved him dearly."

Few owners in sports history can approach Buss' accomplishments with the Lakers, who made the NBA finals 16 times through 2011 during his nearly 34 years in charge, winning 10 titles between 1980 and 2010. The Lakers easily are the NBA's winningest franchise since he bought the club, which is now run largely by Jim Buss and Jeanie Buss, two of his six children.

"We not only have lost our cherished father, but a beloved man of our community and a person respected by the world basketball community," the Buss family said in a statement issued by the Lakers.

"It was our father's often-stated desire and expectation that the Lakers remain in the Buss family. The Lakers have been our lives as well, and we will honor his wish and do everything in our power to continue his unparalleled legacy."

Buss always referred to the Lakers as his extended family, and his players rewarded his fanlike excitement with devotion, friendship and two hands full of championship rings. Working with front-office executives Jerry West, Bill Sharman and Mitch Kupchak, Buss spent lavishly to win his titles despite lacking a huge personal fortune, often running the NBA's highest payroll while also paying high-profile coaches Pat Riley and Phil Jackson.

Always an innovative businessman, Buss paid for the Lakers through both their wild success and his own groundbreaking moves to raise revenue. He co-founded a basic-cable sports television network and sold the naming rights to the Forum at times when both now-standard strategies were unusual, further justifying his induction to the Pro Basketball Hall of Fame in 2010.

"Dr. Jerry Buss was a cornerstone of the Los Angeles sports community and his name will always be synonymous with his beloved Lakers," Los Angeles Mayor Antonio Villaraigosa said. "It was through his stewardship that the Lakers brought 'Showtime' basketball and numerous championship rings to this great city. Today we mourn the loss and celebrate the life of a man who helped shape the modern landscape of sports in L.A."

Johnson and fellow Hall of Famers Abdul-Jabbar and Worthy formed lifelong bonds with Buss during the Lakers' run to five titles in nine years in the 1980s, when the Lakers earned a reputation as basketball's most exciting team with their flamboyant Showtime style. The buzz extended throughout the Forum, where Buss used the Laker Girls, a brass band and promotions to keep Los Angeles fans interested in all four quarters of their games.

Jackson then led O'Neal and Bryant to a three-peat from 2000-02, rekindling the Lakers' mystique, before Bryant and Pau Gasol won two more titles under Jackson in 2009 and 2010.

Although Buss gained fame and fortune with the Lakers, he also was a scholar, Renaissance man and bon vivant who epitomized California cool — and a certain Los Angeles lifestyle — for his entire public life.

Buss rarely appeared in public without at least one attractive, much younger woman on his arm at USC football games, boxing matches at the Forum, poker tournaments — and, of course, Lakers games from his private box at Staples Center, which was built under his watch. In failing health recently, Buss hadn't attended a Lakers game this season.

Buss earned a Ph.D. in chemistry at age 24 and had careers in aerospace and real estate development before getting into sports. With money from his real-estate ventures and a good bit of creative accounting, Buss bought the then-struggling Lakers, the NHL's Los Angeles Kings and both clubs' arena — the Forum — from Jack Kent Cooke in a $67.5 million deal that was the largest sports transaction in history at the time.

Last month, Forbes estimated the Lakers were worth $1 billion, second most in the NBA.

Buss also helped change televised sports by co-founding the Prime Ticket network in 1985, receiving a star on Hollywood Walk of Fame in 2006 for his work in television. Breaking the contemporary model of subscription services for televised sports, Buss' Prime Ticket put beloved broadcaster Chick Hearn and the Lakers' home games on basic cable.

Buss also sold the naming rights to the Forum in 1988 to Great Western Savings & Loan — another deal that was ahead of its time.

Born in Salt Lake City, Gerald Hatten Buss was raised in poverty in Wyoming before improving his life through education. He attended USC for graduate school, eventually becoming a chemistry professor and working as a chemist for the Bureau of Mines before his life took a turn into wealth and sports.

The former mathematician claimed his fortune grew out of a $1,000 real-estate investment in a West Los Angeles apartment building with partner Frank Mariani, an aerospace engineer and co-worker.

Buss purchased Cooke's entire Los Angeles sports empire in 1979, including a 13,000-acre ranch in Kern County. Buss' love of basketball was the motivation for his purchase, and he immediately worked to transform the Lakers — who had won just one NBA title since moving west from Minneapolis in 1960 — into a star-powered endeavor befitting Hollywood.

"One of the first things I tried to do when I bought the team was to make it an identification for this city, like Motown in Detroit," he told the Los Angeles Times in 2008. "I try to keep that identification alive. I'm a real Angeleno. I want us to be part of the community."

Buss' plans immediately worked: Johnson, Abdul-Jabbar and coach Paul Westhead led the Lakers to the 1980 title. Johnson's ball-handling wizardry and Abdul-Jabbar's smooth inside game made for an attractive style of play evoking Hollywood flair and West Coast sophistication.

Riley, the former broadcaster who fit the L.A. image perfectly with his slick-backed hair and good looks, was surprisingly promoted by Buss early in the 1981-82 season after West declined to co-coach the team. Riley became one of the best coaches in NBA history, leading the Lakers to four straight NBA finals and four titles, with Worthy, Michael Cooper, Byron Scott and A.C. Green playing major roles.

Overall, the Lakers made the finals nine times in Buss' first 12 seasons while rekindling the NBA's best rivalry with the Boston Celtics, and Buss basked in the worldwide celebrity he received from his team's achievements. His womanizing and partying became Hollywood legend, with even his players struggling to keep up with Buss' lifestyle.

Johnson's HIV diagnosis and retirement in 1991 staggered Buss and the Lakers, the owner recalled in 2011. The Lakers struggled through much of the 1990s, going through seven coaches and making just one conference finals appearance in an eight-year stretch despite the 1996 arrivals of O'Neal, who signed with Los Angeles as a free agent, and Bryant, the 17-year-old high schooler acquired in a draft-week trade.

Shaq and Kobe didn't reach their potential until Buss persuaded Jackson, the Chicago Bulls' six-time NBA champion coach, to take over the Lakers in 1999. Los Angeles immediately won the next three NBA titles in brand-new Staples Center, AEG's state-of-the-art downtown arena built with the Lakers as the primary tenant.

After the Lakers traded O'Neal in 2004, they hovered in mediocrity again until acquiring Gasol in a heist of a trade with Memphis in early 2008. Los Angeles made the next three NBA finals, winning two more titles.

Through the Lakers' frequent successes and occasional struggles, Buss never stopped living his Hollywood dream. He was an avid poker player, frequently participating in high-stakes tournaments, and a fixture on the Los Angeles club scene well into his 70s, when a late-night drunk-driving arrest in 2007 — with a 23-year-old woman in the passenger seat of his Mercedes-Benz — prompted him to cut down on his partying.

Buss owned the NHL's Kings from 1979-87, and the WNBA's Los Angeles Sparks also won two league titles under Buss' ownership. He also owned Los Angeles franchises in World Team Tennis and the Major Indoor Soccer League.

Buss' six children all have worked for the Lakers organization in various capacities for several years. Jim Buss, the Lakers' executive vice president of player personnel and the second-oldest child, has taken over much of the club's primary decision-making responsibilities in the last few years, while daughter Jeanie runs the franchise's business side.

Jerry Buss still served two terms as president of the NBA's Board of Governors and was actively involved in the 2011 lockout negotiations, developing blood clots in his legs attributed to his extensive travel during that time.

___

Associated Press writer Andrew Dalton contributed to this report.

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Study: Better TV might improve kids' behavior

SEATTLE (AP) — Teaching parents to switch channels from violent shows to educational TV can improve preschoolers' behavior, even without getting them to watch less, a study found.

The results were modest and faded over time, but may hold promise for finding ways to help young children avoid aggressive, violent behavior, the study authors and other doctors said.

"It's not just about turning off the television. It's about changing the channel. What children watch is as important as how much they watch," said lead author Dr. Dimitri Christakis, a pediatrician and researcher at Seattle Children's Research Institute.

The research was to be published online Monday by the journal Pediatrics.

The study involved 565 Seattle parents, who periodically filled out TV-watching diaries and questionnaires measuring their child's behavior.

Half were coached for six months on getting their 3-to-5-year-old kids to watch shows like "Sesame Street" and "Dora the Explorer" rather than more violent programs like "Power Rangers." The results were compared with kids whose parents who got advice on healthy eating instead.

At six months, children in both groups showed improved behavior, but there was a little bit more improvement in the group that was coached on their TV watching.

By one year, there was no meaningful difference between the two groups overall. Low-income boys appeared to get the most short-term benefit.

"That's important because they are at the greatest risk, both for being perpetrators of aggression in real life, but also being victims of aggression," Christakis said.

The study has some flaws. The parents weren't told the purpose of the study, but the authors concede they probably figured it out and that might have affected the results.

Before the study, the children averaged about 1½ hours of TV, video and computer game watching a day, with violent content making up about a quarter of that time. By the end of the study, that increased by up to 10 minutes. Those in the TV coaching group increased their time with positive shows; the healthy eating group watched more violent TV.

Nancy Jensen, who took part with her now 6-year-old daughter, said the study was a wake-up call.

"I didn't realize how much Elizabeth was watching and how much she was watching on her own," she said.

Jensen said her daughter's behavior improved after making changes, and she continues to control what Elizabeth and her 2-year-old brother, Joe, watch. She also decided to replace most of Elizabeth's TV time with games, art and outdoor fun.

During a recent visit to their Seattle home, the children seemed more interested in playing with blocks and running around outside than watching TV.

Another researcher who was not involved in this study but also focuses his work on kids and television commended Christakis for taking a look at the influence of positive TV programs, instead of focusing on the impact of violent TV.

"I think it's fabulous that people are looking on the positive side. Because no one's going to stop watching TV, we have to have viable alternatives for kids," said Dr. Michael Rich, director of the Center on Media and Child Health at Children's Hospital Boston.

____

Online:

Pediatrics: http://www.pediatrics.org

___

Contact AP Writer Donna Blankinship through Twitter (at)dgblankinship

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McCready's ex: Anyone close could see it coming

HEBER SPRINGS, Ark. (AP) — Mindy McCready's ex-boyfriend says she threatened to kill herself earlier this month after she lost custody of her sons, but was somehow released from rehab days before apparently following through on her threat.

Billy McKnight, a former longtime boyfriend who shares a son with the country singer, says the mother of two stayed in court-ordered substance-abuse rehabilitation for about 18 hours before checking out.

McKnight said Monday by phone from Tampa, Fla., that it was a "big mistake" to allow McCready to leave rehab, in light of her fiance David Wilson's recent suicide and the loss of her children.

McKnight is working with authorities to get his son Zander out of foster care.

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Google to open retail stores this year

It started with Apple stores. Then came Microsoft stores.

Are Google stores next?

The Silicon Valley company hopes to open retail stores in time for this year's holiday shopping season, according to a report by 9to5Google, which cites an unnamed source.

According to the report, Google's leaders have decided retail stores are necessary for the eventual launch of Google Glass -- eyeglasses with capabilities similar to that of smartphone.

QUIZ: How much do you know about Google?

To attract regular consumers -- and not just hard-core tech users -- Google believes it needs to let people try out Google Glass in person, the report says. That's what Apple does with its products at its stores.

Besides Google Glass, the stores would also sell Chrome computers and Google Nexus smartphones and tablets.

The report doesn't specify where or when these stores might open, except to say they will be located in major U.S. metropolitan areas.

Google could not be reached for comment.

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Hutchinson expected to drop out, endorse Kelly

State Sen. Toi Hutchinson dropped out of the 2nd District special Democratic primary today and endorsed former state Rep. Robin Kelly in the contest to replace Jesse Jackson Jr. in Congress.

The move, announced in a morning news release, shakes up the Democratic field just nine days before the Feb. 26 primary election.

"Robin is a friend, and has captured momentum in pulling our community together. I am simply unwilling to risk playing a role going forward that could result in dividing our community at time when we need unity more than ever," Hutchinson said in the statement.

Hutchinson recently experienced a pair of setbacks during the short campaign. A super political action committee run by New York Mayor Michael Bloomberg started airing a TV attack ad backing Kelly and attacking Hutchinson and another candidate, former one-term U.S. Rep. Debbie Halvorson of Crete, for past support from the National Rifle Association.

Gun control has loomed as a big issue in the contest and that's what Hutchinson indicated her departure from the contest was about.

"In the wake of horrendous gun related crimes all across our country, I agree with Robin that we need to stand together to fight gun violence, but Debbie Halvorson has been wrong headed in her refusal to moderate her views on banning dangerous assault weapons. President Obama needs a strong voice and a partner in Congress to win these important fights and I do not believe Debbie Halvorson would be that voice or partner," Hutchinson said in a statement.

Besides the gun control attack ad, Hutchinson had to deal with a recent news report detailing how she paid her mother as a campaign consultant. Hutchinson also was not listed as a participant in upcoming WTTW-Ch. 11 candidate forums.

Hutchinson's camp began contacting supporters Saturday night telling them of her intention to drop out of the contest, said two sources with knowledge of the decision. There are now three major Democratic candidates left in a 15-candidate field: Kelly, Halvorson and 9th Ward Ald. Anthony Beale of Chicago.

Hutchinson got an early boost in the contest when Cook County Board President Toni Preckwinkle endorsed her instead of Kelly, who served as a top aide to Preckwinkle. But Preckwinkle jumped to Kelly's camp today, according to the Hutchinson campaign news release.

As of Feb. 6, Kelly trailed Hutchinson in cash available to spend. Kelly reported $88,820 available while Hutchinson had more than double at $199,901. Hutchinson’s campaign has engaged in a significant direct-mail campaign since that time. For the entire campaign, through Feb. 6, Hutchinson reported raising $281,106. Hutchinson has been endorsed by Preckwinkle, who gave her $1,000.

Overall, campaign disclosure reports showed Kelly has raised more than $303,725 since the start of the short campaign through Feb. 6. Campaign aides to Kelly said she has raised $417,727 for the campaign cycle through Wednesday.

Tribune reporter Bill Ruthhart contributed to this report.

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Intel Israel more than doubles exports, mulls new investment

TEL AVIV (Reuters) - Intel's Israeli subsidiary more than doubled its exports in 2012 to $4.6 billion and is seeking to bring manufacturing of the company's next generation of chips to Israel.

Intel's exports, which rose 109 percent from $2.2 billion in 2011, were boosted by the start of production of chips using 22 nanometer technology at its Kiryat Gat plant in southern Israel, which is now operating at full capacity.

Intel, the world's No. 1 chipmaker, will build chips over the next two to three years with features measuring just 14 nm in Ireland and the United States but the company is already thinking about where it will produce 10 nm chips. The narrower the features, the more transistors can fit on a single chip, improving performance.

Intel Israel executives said they would like to see 10 nm production in Israel.

"The average life of a technology is two to six years so we need to be busy to get the next technology, 10 nanometer," Maxine Fassberg, general manager of Intel Israel, told a news conference on Sunday. "We need to get a decision far enough in advance to be able to upgrade the plant. So for 10 nanometer, decisions will need to be made this year."

Fassberg said upgrading the existing Fab 28 plant in Israel would require a lower investment than building a new plant but would still involve several billion dollars.

Intel Israel has in the past received government grants to help with the costs of its investments and Fassberg told Reuters the company was "constantly in talks with the government".

Intel has invested $10.5 billion in Israel in the past decade, including $1.1 billion in 2012, and has received $1.3 billion in government grants.

The company accounted for 20 percent of Israel's high-tech exports last year and 10 percent of its industrial exports, excluding diamonds.

"If Intel had not increased its exports, Israel's high-tech exports would have shrunk by 10 percent," Intel Israel President Mooly Eden said.

Most of Intel Israel's exports - $3.5 billion - came from its chip manufacturing activities.

Intel is Israel's largest private employer, with 8,542 workers, up 10 percent from 2011. The company has two plants - in Jerusalem and Kiryat Gat - as well as four research and development centers.

Eden said Intel was also committed to investing in start-ups, having invested in 64 Israeli companies since 1996. In July its global investment arm Intel Capital said it would expand its operations in Israel.

(Reporting by Tova Cohen; Editing by Helen Massy-Beresford)

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