Intel clarifies plant delay explanation
Another relief story for Monday
Friday October 24 8:28 PM EDT
SAN FRANCISCO, Oct 24 (Reuters) - Intel
Corp said that it is delaying the opening of
its $1.3 billion plant in Fort Worth, Texas
due to a product switch at another plant in
Israel, not due to weakening demand for
flash memory chips.
Intel said the plant in Texas was scheduled
to make logic chips, which will now be
switched to Israel, because the plant in Israel
is closer to volume production.
''It means the capacity that Texas
represented won't be needed until the
future,'' said an Intel spokesman, clarifying
previous reports on the plant.
''The unit demand for flash remains high.''
He added that there are many new entrants
and the competition is very aggressive but
that industry analysts forecast flash memory
will grow in the future.
Intel will counter the competition in flash
with new products and by being aggressive
in pricing and supply, he said, but he said
Intel is not forecasting weak demand.
The plant in Israel was to make flash
memory chips but Intel said that the plant
will now make logic and micrprocessor
chips.
''The reason it was switched is the growing
demand for microprocessor products and we
can be in production and online in Israel
quicker because the factory construction is
further along,'' said Howard High, the Intel
spokesman.
He said the Israel plant was started about a
year earlier than the Texas plant.
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