Insecure Feelings from Intel Intel Postpones Opening Irish Chip Factory Ben Alley
Ireland is the chosen spot for one of Intel’s brand new chip factories, costing 2 billion dollars, but Intel has delayed it by a year. This is in line with the company's fallen projected earnings, though the P4 was expected to boost them.
…In a move that some sources say is a response to slowing sales of microprocessors, Intel Corp. today announced a one-year delay in the opening of a $2 billion wafer fab planned in Ireland. The plant, called Fab 24, will begin production in the second half of 2002 instead of 2001 as originally planned, but Intel also said it will now be dedicated as a 300-mm wafer facility.
Intel's plans to postpone the opening of Fab 24 began to leak out Tuesday night. The delay has fueled more speculation that Intel's new Pentium 4 processor might be taking off slower than the company had expected.
The company has reduced fourth quarter 2000 sales projections again for the second time this year.
Intel is suffering from the start of a new chip line that needs a little love, for the world is still seeing what the P4 can do, and software which can take better advantage of its features are just not here yet. Can the P4 push Intel’s sales up to their usual heights? Yes, it could, but will AMD get there first, along with other competition? We’ll see.
