Tony - Re: "Intel is on track for the Itanium launch this year, just said on CNBC, Tom Costello. Where'd he get that from?"
From Andy Bryant (Mary's Fave) at the B of A Conference:
"Meanwhile, Intel Chief Financial Officer Andy Bryant said in a speech Wednesday that Intel's aim is to "make people have to run to keep up with us," an obvious reference to rival Advanced Micro Devices Inc. (AMD).
Intel sees nothing that would prevent it from unveiling its 64-bit Itanium processor on schedule this year, he said.
Addressing the Banc of America Securities technology conference, Bryant reiterated that Intel sees cost reductions this year of 20% in its Celeron manufacturing and 50% in Pentium III production. He also repeated that the company expects a modest increase in its gross margin from last year's 59.7%, partly as a result of the cost reductions. "
Paul
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02/02 11:25A (DJ)
Intel To Buy Rockwell's Colorado Semiconductor Plant, Create 1,000 Jobs
Story 0718 (H/, INTC-D, INTC, ROK, ROKW-D, I/DTC, I/SEM, N/CAC, N/DJN...)
SANTA CLARA, Calif. -(Dow Jones)- Semiconductor giant Intel Corp., which has been struggling to meet demand for its chips, said it agreed to acquire a wafer-fabrication facility in Colorado Springs, Colo. from Rockwell International Corp.
Financial terms weren't disclosed.
Intel (INTC) said it plans to invest $1.5 billion in the vacant Rockwell (ROK) plant, which will help Intel add "significant" manufacturing capacity in the short term. The location includes two manufacturing facilities with a combined total of 944,000 square feet and several support buildings.
"This facility will give us the ability to rapidly add more manufacturing capacity in order to address our customers' growing demand for a wide variety of our products," said Mike Splinter, senior vice president and general manager of Intel's technology and manufacturing group.
Milwaukee-based Rockwell, a maker of avionics and communications systems, exited the semiconductor business in January 1999 with the spin off of communications-chip maker Conexant Systems Inc. (CNXT).
Intel expects to begin producing flash memory and logic components at the plant later this year. The chips are used in a wide variety of communications, networking and computer equipment.
When up and running at full speed, the plant will employ more than 1,000 people in Colorado Springs, Intel said.
The news comes on the heels of Intel's announcement last week that it would spend $2 billion to build and equip a 360,000 square foot wafer-production facility at its site in Chandler, Arizona.
Intel said the Arizona plant would create 1,000 jobs over the next five to eight years, adding to the 8,150 employees it already has in Chandler.
The company also is looking to expand at other sites, including in New Mexico.
Meanwhile, Intel Chief Financial Officer Andy Bryant said in a speech Wednesday that Intel's aim is to "make people have to run to keep up with us," an obvious reference to rival Advanced Micro Devices Inc. (AMD).
Intel sees nothing that would prevent it from unveiling its 64-bit Itanium processor on schedule this year, he said.
Addressing the Banc of America Securities technology conference, Bryant reiterated that Intel sees cost reductions this year of 20% in its Celeron manufacturing and 50% in Pentium III production. He also repeated that the company expects a modest increase in its gross margin from last year's 59.7%, partly as a result of the cost reductions.
In its fourth-quarter earnings report last month, Intel projected the margin at about 61%.
Bryant defended the company's performance in 1999. "What felt like a pretty turbulent, uncertain year we felt pretty good about," with record revenue of $29.4 billion, he said.
Intel expects its first computer chip running at one gigahertz in 2000, Bryant said. It also anticipates in the second half of the year a Pentium III for the notebook market, using the power-saving SpeedStep technology and running at 750 megahertz. The mobile market is probably growing faster than the desktop market, he said.
Bryant said he expects Intel's new networking and communications business to continue its greater than 50% growth this year.
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