Intel's capital spending will be flat in 2002 over 2001, says analyst
Semiconductor Business News
(11/21/01 13:53 p.m. EST)
SANTA CRUZ, Calif. -- While some analysts believe that Intel Corp. will drastically cut its capital expenditures in 2002 over 2001, one industry expert says the company's total spending will be flat to slightly down next year.
Intel's capital spending is projected to drop only 6% next year, from $7.5 billion in 2001, to about $7 billion in 2002, said analyst George Burns, who tracks worldwide fab-capacity for Strategic Marketing Associates Inc. in Santa Cruz.
Burns believes that Intel will meet that target, based on the company's stated 300-mm fab projects. "If you look at their projects, it looks like their spending will be flat in 2002," he said.
At present, Intel has no less than six 300-mm on the drawing board (see May 14 story ). And, if Intel's capital expenditures should hit $7 billion in 2002, this would represent about 17.9% of the total spending among chip makers next year, according to Strategic Marketing Associates.
Capital expenditures among worldwide semiconductor makers are projected to flat-to-down 10% next year, from $43 billion in 2001, to $39 billion in 2002, according to Burns (see Nov. 16 story ).
Others believe the Intel's capital spending will be drastically cut in 2002. An Intel executive recently told the Asian Wall Street Journal that the company's capital spending for 2002 would be 10-20% below that of 2001.
In a recent newsletter to subscribers, IC Insights Inc. said it believes Intel's capital spending could fall to $4.5 billion in 2002 (see Oct. 26 story ). |
