Chipzilla is in hotwater in New Mexico for not hiring enough local labour.

The Albuquerque Journal is reporting how the local government is upset because Intel has not hired as many people for its fab as it promised. Intel was given tax breaks and other sweeteners if it set up shop in Albuquerque on the condition that it hired local labour.

This is the third time in five years that Intel has failed to find at least 60 percent of new hires in New Mexico. A report presented to Sandoval County commissioners by Intel government affairs manager Liz Shipley this week showed only 35 percent of the 349 employees the company hired in 2011 were state residents.

The 60 percent hiring goal was one of the conditions the county set in 2004 when it approved a $16 billion revenue bond for Intel. Intel missed the goal in 2009 and 2006, as well. In 2009, 27 percent of its 11 new hires were from New Mexico.

Intel told the Journal that it couldn't find enough skilled engineers in New Mexico to meet its needs, and said it has the same problem throughout the country.