Wednesday May 24, 2:14 pm Eastern Time
Intel to spend $2 bln to boost chip capacity in N.M.
PALO ALTO, Calif., May 24 (Reuters) - Intel Corp., the world's largest semiconductor manufacturer said on Wednesday it will spend $2 billion over the next three years to boost the number of chips it can make at its New Mexico plant, reflecting continued growth in the semiconductor industry.
Santa Clara, California-based Intel (NasdaqNM:INTC - news) said that the addition, which will include an additional 135,000 square-feet of clean-room space and 1 million square-feet of building space, will be complete and running at volume production in the second half of 2002.
``This is in support of the healthy growth of the industry,'' said Michael Splinter, head of Intel's technology and manufacturing group, in an interview. He added that most of the spending will occur in 2001 and 2002 and that the $6 billion Intel plans to spend this year in capital expenditures includes the first portions of the plant expansion, which is outside Albuquerque, N.M.
The addition in chipmaking capacity will make Intel's next-generation microprocessors -- the brains of personal computers and servers -- and will include both its Pentium 32-bit class of chip as well as its forthcoming 64-bit chip used in the most powerful of computers.
Intel shares rose 4-1/8 to 114 in midafternoon trading on the Nasdaq while the Nasdaq fell 1.74 percent. |
