http://www.reuters.com/article/m ... 123120090210?rpc=44
Intel to invest $7 bln in U.S. as recession deepens
Tue Feb 10, 2009 3:08pm EST
* Intel to build next-gen chip manufacturing plants
* Plans to use cash, does not plan capital-raising
* "You invest your way" out of recession, company says
* Shares fall 4.6 pct, in line with market (Recasts, adds details on investment, analyst\'s comment)
By Franklin Paul and Janet Kornblum
NEW YORK/SAN FRANCISCO, Feb 10 (Reuters) - Intel Corp (INTC.O) plans to invest $7 billion over two years to build next-generation U.S. chip manufacturing plants, unveiling its biggest spending plan for new technology amid a deepening economic recession and huge internal job cuts.
Intel, larger rival to Advanced Micro Devices (AMD.N) in the business of making computer microprocessors, wants to make faster, smaller chips that consume less energy.
Analysts say the spending plan did not surprise markets, as it came on the heels of Intel\'s announcement it would begin ramping up its operations to produce chips based on 32-nanometer circuitry by 2009\'s final quarter, and was in line with the firm\'s annual capital expenditures.
Spokesman Chuck Mulloy said the firm would not raise capital but rely on internal cash to bankroll the plan, which the firm called its largest-ever investment for a new manufacturing process.
Intel, which said in January that its 2009 capital spending would be flat to slightly down from 2008\'s $5.2 billion, had more than $8.68 billion in cash, cash equivalents, and short-term investments at the end of 2008.
"You never save your way out of recession. You invest your way," Mulloy said.
The global chip-making industry is struggling through what may be its worst-ever downturn.
AMD, Intel\'s distant rival, has announced 1,100 job cuts as demand for personal computers continues to crumble. The U.S. firm, which last month posted a wider-than-expected quarterly loss, is now trying to spin off its manufacturing operations into a foundry -- or chip-making -- firm. [ID:nN22549383]
Mulloy said Intel hoped to manufacture the new chips in larger volumes than previously planned to get them into mainstream products -- such as PCs -- quicker. He did not elaborate on time frames.
Shares in Intel slid 4.6 percent in the afternoon while the Nasdaq composite index .IXIC fell 3.8 percent.
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Weird act , wasn\'t Intel just CUT jobs and Close some "old" fab ??
Is this already in their plan ?!!!!
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Last edited by dom on 2009-2-11 at 04:34 ]
