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Technology Stocks : Semi Equipment Analysis

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Dec 5 4:00 PM EST

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From: FJB	1/16/2009 12:11:50 PM
	2 Recommendations of 95531

Intel keeps 2009 capital spending at 2008 levels Fabtech - www.fabtech.org Intel Corporation will keep capital spending plans for 2009 inline with its 2008 levels, the company said in a statement, covering fourth quarter and full year financial results. According to 2008, full year figures, Intel’s capital spending reached approximately US$5.23 billion and inline with Intel’s stated spending plans of US$5.2 billion plus or minus $200 million at the beginning of 2008. A key part of the spending plans for 2009 are to be focused on the introduction of 32nm process technology, which is to be introduced in the second-half of 2009. The company said in its quarterly conference call that its 32nm migration would remain on track, despite the economic downturn and would assist in lowering device costs. Capital spending actually peaked in the fourth quarter of 2008 at approximately US$1.76 billion, despite a reduction in factory loadings that are expected to continue into the first quarter of 2009. The reduction in factory loadings is primarily targeting a reduction in inventory build as market demand fell drastically in Q408. fabtech.org

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