Intel trims capital expenditure

Intel trims capital expenditure
Tom Foremski
Intel says that it will spend about $5bn in capital expenditures this year as it completes new fabs and upgrades existing manufacturing operations.
But the figure is lower than previous plans to spend as much as $6.5bn on capital equipment this year, according to sources close to Intel.
Intel president Craig Barrett revealed Intel’s spending plans during a visit to Australia, but he dismissed speculation in the Australian press that Intel was considering investing $6bn in new fabs in Australia.
Intel spends more on fab equipment than any other company and any decrease in its capital expenditures has a knock-on effect on major chip equipment companies. US chip equipment maker Kulicke & Soffa announced on Friday that it had lost a major order with an unnamed company, rumoured to be Intel. Share prices of the company quickly plunged by 13 per cent as investors worried about further order cancellations.
Intel has delayed the building of a large Texas based fab and has been consolidating its chip making operations as it tries to maintain strong profit margins on its microprocessors in the face of declining PC prices.


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