Paul -
Re: "this is not good news"
This may have already been posted, but just in case.....
Intel corrected their previous statement. The switch is apparently not due to weakness in the flash market.
biz.yahoo.com
Intel clarifies plant delay explanation
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. |
