Intel to spend $2.65 Billion on .25 equipment in 1998
Dow Jones Newswires -- January 28, 1998
Intel CFO: Believes Intel-Digital Deal Will Go Through
By Mark Boslet
SAN FRANCISCO (Dow Jones)--Intel Corp. (INTC) Chief Financial Officer Andy Bryant said he believes the company's deal to buy the chip-making operations of Digital Equipment Corp. (DEC) will be approved by the Federal Trade Commission.
"We think everything's going forward," Bryant said. "And there is no indication" Compaq Computer Corp.'s (CPQ) acquisition of the rest of Digital Equipment will affect it, he said.
Speaking at the NationsBanc Montgomery Securities Technology Conference here Wednesday, Bryant painted a bullish picture of the chip maker's prospects for 1998.
"We believe the industry growth rate will continue," he said. That's why "we are investing in the future."
Bryant repeated that Intel plans to spend $5.3 billion on capital spending in 1998, with half of its equipment spending on gear to produce chips at the narrow circuit width of 0.25 microns.
"We are more comfortable than we've ever been" that the company's strategy and products "will make us successful," Bryant said during his address to a packed conference room.
He reiterated that Intel expects half of its production by mid-year to be of its new generation Pentium II chip. The company will roll out 350-megahertz and 400-megahertz chips during the first half of the year and a 450-megahertz chip toward the end of the year, he said.
A stripped-down version of the Pentium II also is being aimed at the market for sub-$1,000 computers, he said.
Also expected during the first half of the year is the Auburn i740, a chip to offer better 3D graphics on a computer.
"We can no longer have general purpose microprocessors meeting all needs," he said. "We have to match capabilities with customers."
-Mark Boslet; 415-496-1366 |
