Use these standard ultrafilter facts: a space is compact if and only if every ultrafilter on it converges; the image ultrafilter under a map is an ultrafilter; and a convergent ultrafilter contains every neighborhood of its limit.
Let with all factors compact. An empty factor makes empty and hence compact. Otherwise, given an ultrafilter on , push it forward by each product projection to obtain an ultrafilter on . Choose a limit of each, and put . A basic product neighborhood of is an intersection of finitely many inverse images of coordinate neighborhoods. Each inverse image belongs to , so their finite intersection does too. Thus converges to , proving compactness of the product. Uniqueness of coordinate limits is not needed, so the factors need not be Hausdorff.
For local compactness, suppose only the factors indexed by a finite set may be noncompact. At choose, for each , a compact neighborhood of , with an open neighborhood . For other indices put . The compact product contains the open product neighborhood restricting just the finitely many coordinates in to . Hence every point has a compact neighborhood and the product is locally compact.
The unrestricted assertion is false. Each factor of is locally compact, but its product is not. Any basic neighborhood restricts only finitely many coordinates. Choose a free coordinate ; its projection of that neighborhood is all of . A compact neighborhood containing it would consequently have compact image equal to , impossible. This shows directly that no point has a compact neighborhood.

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