Intel Takes Steps to Boost Production at Several U.S. Locations
12/16/99 3:41:00 PM
Source: Bloomberg News
Santa Clara, California, Dec. 16 (Bloomberg) -- Intel Corp., the world's biggest semiconductor maker,
is taking steps to boost production at several plants in the U.S. as demand for its microprocessors
and others products rises.
The company is reopening a plant in Aloha, Oregon, to make memory chips. It's spending $800
million to renovate a plant in Hudson, Massachusetts, and has filed for permits to build a new plant
near Chandler, Arizona. No decision has been made on whether to build in Chandler, a spokesman
said.
Intel is struggling to meet demand for microprocessors right now as
more people buy personal computers to get on the Internet. It's also
selling more flash-memory chips, which retain information even when
the power in a device is turned off. The chips are crucial for making
mobile phones and electronic organizers.
''We're in the process of evaluating our capacity plans,'' Intel
spokesman Chuck Mulloy said of the Chandler permits.
Intel already has two plants in Chandler, near Phoenix. ''We're looking
at other sites'' too, Mulloy said.
The company is moving ahead with plans to reopen the Aloha plant,
just west of Portland, to make flash memory. The factory was built in
1978 and mothballed in 1998.
Flash memory, based on technology Intel invented, is one of the fastest-growing parts of the
semiconductor market. Flash sales are expected to rise 63 percent to $4.1 billion this year,
according to the Semiconductor Industry Association.
Upgrading Hudson
Intel unveiled the investment plan for the Hudson, Massachusetts, plant today. It bought the factory
from Digital Equipment Corp. in May 1998 as part of a settlement of patent litigation with Digital. Intel
runs all of its ''fabs'' with the same machines and processes, and the Hudson plant has to be brought
up to the same standards as the others, Mulloy said.
Intel plans to spend $800 million on the plant in the next two years and will add 450 jobs there,
Mulloy said. The plant is where Intel is making its new Network Processor, which is designed to run
computer networking equipment.
Intel has 12 plants now making chips around the world.
The company said in late October that it would meet all commitments to sell chips to customers,
even though supplies of the products were ''tight'' because of rising demand.
Shares of the Santa Clara, California-based company rose 1 5/16 to 80 1/4 today. They've risen 35
percent this year.
Intel's plans to reopen the plant in Oregon were reported earlier by the Oregonian newspaper. The
company's request for permits in Arizona was reported earlier by the Mesa Tribune.
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