UK patient dies from SARS-like coronavirus

LONDON (AP) — A patient being treated for a mysterious SARS-like virus has died, a British hospital said Tuesday.

Queen Elizabeth Hospital in Birmingham, central England, said the coronavirus victim was also being treated for "a long-term, complex unrelated health problem" and already had a compromised immune system.

A total of 12 people worldwide have been diagnosed with the disease, six of whom have died.

The virus was first identified last year in the Middle East. Most of those infected had traveled to Qatar, Saudi Arabia, Jordan or Pakistan, but the person who just died is believed to have caught it from a relative in Britain, where there have been four confirmed cases.

The new coronavirus is part of a family of viruses that cause ailments including the common cold and SARS. In 2003, a global outbreak of SARS killed about 800 people worldwide.

Health experts still aren't sure exactly how humans are being infected. The new coronavirus is most closely related to a bat virus and scientists are considering whether bats or other animals like goats or camels are a possible source of infection.

Britain's Health Protection Agency has said while it appears the virus can spread from person to person, "the risk of infection in contacts in most circumstances is still considered to be low."

Officials at the World Health Organization said the new virus has probably already spread between humans in some instances. In Saudi Arabia last year, four members of the same family fell ill and two died. And in a cluster of about a dozen people in Jordan, the virus may have spread at a hospital's intensive care unit.

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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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EU privacy regulators take aim at Google privacy policy

BRUSSELS (Reuters) - European data watchdogs said on Monday they plan to take action against Google by this summer for its privacy policy, which allows the search engine to pool user data from across all its services ranging from YouTube to Gmail.

The move is the latest in a skirmish between the web giant and Europe's data protection regulators who view the privacy rules put in place in March by Google as "high risk," although have stopped short of declaring them illegal.

Regulators view the bundling of data on users as potentially constituting a high risk to individuals' privacy.

Google last year consolidated 60 privacy policies into one, combining data collected on individual users across its services, including YouTube, Gmail and social network Google+. Users cannot opt out.

In October, Europe's 27 data regulators gave Google four months to change its approach, listing 12 "practical recommendations" for it to bring its privacy policy into line.

On Monday the French privacy regulator, which last year led an initial inquiry into the tech giant's new policy, said it would set up a further inquiry because Google had not yet addressed their concerns.

"Google did not provide any precise and effective answers," the French regulator CNIL said.

"In this context, the EU data protection authorities are committed to act and continue their investigations. Therefore, they propose to set up a working group, led by the CNIL, in order to coordinate their reaction, which should take place before summer."

Google said it did respond to CNIL on January 8 by listing steps already taken to address their concerns.

"We have engaged fully with CNIL throughout the process and will continue to do so," Al Verney, a spokesperson said.

He added that the privacy policy did respect European law.

The pooling of anonymous user data across Google services, is a big advantage when selling online ads.

Google and other large internet groups such as Facebook provide free services to consumers and earn money from selling ads that they say are more closely targeted than traditional TV or radio campaigns.

(Reporting by Claire Davenport; editing by Leila Abboud and Keiron Henderson)

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Jerry Buss, Los Angeles Lakers' owner, dies at 80

LOS ANGELES (AP) — Jerry Buss, the Los Angeles Lakers' playboy owner who shepherded the NBA franchise to 10 championships from the '80s Showtime dynasty to the Kobe Bryant era, died Monday, his assistant said.

Buss died at Cedars-Sinai Medical Center in Los Angeles, said Bob Steiner, his assistant. He was 80.

He'd been hospitalized for cancer, but the immediate cause of death was kidney failure, Steiner said.

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.

Few owners in sports history can even approach Buss' accomplishments with the Lakers, who made the NBA finals 16 times through 2011 during his 32 years in charge, winning 10 titles between 1980 and 2010. The Lakers easily are the NBA's winningest franchise since he bought the club.

Few owners have ever been more beloved by their players than Buss, who always referred to the Lakers as his extended family. Working with front-office executives Jerry West 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, adding justification for his induction into the Pro Basketball Hall of Fame in 2010.

Magic Johnson and fellow Hall of Famers Kareem Abdul-Jabbar and James 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 glamorous Showtime style.

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

Although Buss was proudest of his two hands full of NBA title rings, 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.

The father of six rarely appeared in public without at least one attractive, much younger woman on his arm at USC football games, boxing matches, poker tournaments — and, of course, Lakers games from his private box at Staples Center, which was built under his watch.

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 largely from his Santa Monica real-estate ventures, 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.

In January 2011, Forbes estimated the Lakers were worth $643 million — the second-most valuable NBA franchise.

Buss also helped change televised sports by co-founding the Prime Ticket network in 1985, even 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 Wyoming and attended USC for graduate school, eventually becoming a chemistry professor and working as a chemist for the Bureau of Mines before his life took an abrupt 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.

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 cool.

Riley, the former broadcaster who fit the L.A. image perfectly with his slick-backed hair and chiseled 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' children moved into leadership roles with the Lakers in their father's later years. Jim Buss, the Lakers' executive vice president of player personnel and the second of Buss' six children, has taken over much of the club's primary decision-making responsibilities in the last few years, while daughter Jeanie is a longtime executive on the franchise's business side — and Jackson's longtime companion.

Yet Jerry Buss 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

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Singer Mindy McCready dies in apparent suicide

HEBER SPRINGS, Ark. (AP) — Perhaps there was one heartbreak too many for Mindy McCready.

The former country star apparently took her own life on Sunday at her home in Heber Springs, Ark. Authorities say McCready died of a suspected self-inflicted gunshot to the head and an autopsy is planned. She was 37, and left behind two young sons.

McCready had attempted suicide at least three times since 2005 as she struggled to cope amid a series of tumultuous public events that marked much of her adult life.

Speaking to The Associated Press in 2010, McCready smiled wryly while talking about the string of issues she'd dealt with over the last half-decade.

"It is a giant whirlwind of chaos all the time," she said of her life. "I call my life a beautiful mess and organized chaos. It's just always been like that. My entire life things have been attracted to me and vice versa that turn into chaotic nightmares or I create the chaos myself. I think that's really the life of a celebrity, of a big, huge, giant personality."

This time it seems the whirlwind overwhelmed McCready.

Her death comes a month after that of David Wilson, her longtime boyfriend and the father of her youngest son. He is believed to have shot himself on the same porch of the home they shared in Heber Springs, a small vacation community about 65 miles north of Little Rock. His death also was investigated as a suicide.

It was the most difficult moment in a life full of them. McCready issued a statement last month lamenting his death. And she called him her soul mate and a caregiver to her sons in an interview with NBC's "Today" show.

"I just keep telling myself that the more suffering that I go through, the greater character I'll have," she said, according to a transcript of the interview.

Like so many times before, McCready showed a little toughness in the midst of a personal storm, again endearing herself to her fans. But as usual, the brave face for the camera hid a much more complicated internal struggle that surfaced publicly time and again over the last 10 years.

This time, along with her remembrances of finding Wilson as he lay dying, she also answered questions about whether they'd argued earlier that evening about an affair and if she'd shot him.

"Oh, my God," the "Today" transcript reads. "No. Oh, my God. No. He was my life. We were each other's life."

It's unclear what circumstances led to McCready taking her own life, but it appears she was struggling again with twin issues that have persisted for years — substance abuse and the custody of her children. She checked into court-ordered rehab and gave her children up to foster care earlier this month after her father asked a judge to intervene, saying she'd stopped taking care of herself and her sons and was abusing alcohol and prescription drugs.

It's unclear why McCready was out of rehab.

A publicist for Billy McKnight, McCready's former boyfriend and the father of her oldest son, said the children remain in foster care. Arkansas Department of Human Services spokeswoman Amy Webb could not confirm their whereabouts, citing agency rules.

McCready's relationship with McKnight was one of the more difficult periods of her life. McKnight was arrested in 2005 on charges of attempted murder after authorities say he beat and choked her. And the two continued to struggle over their son with McKnight recently filing for custody in light of McCready's latest sting in rehab.

McKnight was unavailable for comment Monday morning.

McCready made headlines in April 2008 when she claimed a longtime relationship with baseball great Roger Clemens. Published reports at the time said she met the pitcher at a Florida karaoke bar when she was 15 and he was 28 and married. Clemens has denied the relationship.

On Monday, Clemens handed a written statement to reporters at the Houston Astros spring training facility in Kissimmee, Fla., where he is serving as a special instructor for the team.

"Yes, that is sad news. I had heard over time that she was trying to get peace and direction in her life. The few times that I had met her and her manager/agent they were extremely nice."

McCready also was engaged to actor Dean Cain in 1997, but their relationship fell apart as well.

Her troubles weren't just romantic. Over time she was arrested for fraudulently obtaining prescription drugs, probation violation, misdemeanor assault of her mother Gayle Inge and other problems.

In 2010, after a stint on Dr. Drew Pinsky's "Celebrity Rehab 3" where she was treated for "love addiction," she told The Associated Press she may have finally found love and the strength to get her life back on track.

Pinsky, whose publicist did not immediately respond to messages asking for comment, called McCready an "angel" in the season finale and expressed hope she would continue to seek treatment in a later interview. McCready suffered a seizure in one of the show's scarier moments. Tests showed she had suffered brain damage, something she attributed to her abuse at the hands of McKnight.

McCready is the fifth celebrity to pass away since appearing on Pinsky's show and the third from Season 3. Alice in Chains bassist Mike Starr and "Real World" participant Joey Kovar both died of overdoses.

She entered her relationship with Wilson, a producer and musician who was 34 when he died last month, a short time later. She'd just met Wilson and talked openly about their relationship in the 2010 interview. Wilson declined to speak on the record.

With a publicist, reporters, cameras, makeup artists and musicians swirling around her during a press day for her last album, "I'm Still Here," McCready fended off questions about a sex tape and said she and Wilson started out as friends.

"And I've never had a relationship like that before where we started completely as friends," she said. "It turned into friends really caring about each other and then it turned into love and I've never had that happen before."

Things didn't remain calm for long, though. Unhappy with custody arrangements, McCready took her older son from her mother, the boy's legal guardian, in late 2011. She fled to Arkansas without permission over what she called child abuse fears. Authorities eventually found McCready hiding in a home without permission and took the boy into custody.

She and Wilson had their son in April 2012.

___

Music Writer Chris Talbott reported from Nashville, Tenn. Sports Writer Noah Trister, in Kissimmee, Fla., contributed to this report.

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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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