Intel May Be Slowing Down Fab Upgrades

From X-bit Labs: A number of industry reports that emerged on Tuesday suggests that Intel Corp. intends to slowdown aggressive expansion of manufacturing capacities by upgrading fabs next year due to slower than expected growth of demand towards various chips. In particular, there are indicators that Intel may reduce capital expenditures in 2012 and/or 2013.

Earlier this year the world's largest maker of chips announced aggressive plan to transit five of its fabs to 22nm process technology in 2011 - 2012 timeframe. In particular, the company is looking forward to upgrade its D1D (Oregon), D1C (Oregon), Fab 13 (Arizona), Fab 32 (Arizona) and Fab 28 (Israel) production facilities to the new manufacturing process. Some financial analysts believed that Intel also intended to convert its Fab 24 in Leixlip, Irelan, to the new process technology in 2012 - 2013 timeframe. However, Intel seems to have delayed the plan and will only convert the fab to 10nm or 14nm fabrication processes.

"Our industry checks suggest Intel has decided to remove Fab 24 (Ireland) from its 1270 (22nm) roadmap. What is unclear to us is whether Intel will re-allocate capacity to Israel or other facilities or whether this is a cut to capex," analyst C.J. Muse with Barclays Capital wrote in a research note, reports Tech Trader Daily.

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