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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (25)	10/23/2001 12:03:41 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Intel's capital spending could be $6-6.8 billion in 2002, says report Semiconductor Business News (10/22/01 16:23 p.m. EST) SANTA CLARA, Calif. -- Intel Corp.'s capital expenditures are reportedly projected to fall between $6-to-$6.8 billion in 2002--a 10-20% decline over the $7.5 billion figure in 2001, according to estimates from Prudential Securities Inc. of New York here today. Although the projected capital spending figure is down, the forecast is actually up from previous estimates. "A newswire report stated that Intel CTO Patrick Gelsinger has commented that Intel's 2002 capital spending plans could be down 10-20% ($6-to-$6.8 billion) from 2001 levels," according to a newsletter from Prudential Securities. "In our view, this could be positive as many analysts were expecting Intel's capex to be down significantly [from between $4.5-to-$5.5 billion] after an extraordinarily high capital spending level in 2001 of $7.5 billion," according to the company. "Our bottoms up analysis of Intel's current fab plans suggests next year's capital spending plans could be in the $5.5-to-$6.5 billion range," the company projects. In comparison, the capital spending for the entire IC industry is projected to fall "in excess of 20%" in 2002 over 2001. "We believe the initial 2002 semi capex estimates from [semiconductor manufacturers] are likely to appear abysmal," according to the forecast. The news from Intel is positive for some. Chip-equipmentmanufacturers that could benefit from Intel's 2002 spending include Novellus, KLA-Tencor, Applied Materials, and Rudolph Technologies, among others, they said. So far, Intel has spent $6.2 billion in terms of capital expenditures for 2001. In the December quarter, the Santa Clara-based chip giant plans to spend $1.3 billion, according to Prudential Securities. Intel's 2002 spending will include the ramp of three 300-mm plants, including Fab 11x in Rio Rancho, N.M., D1D in Hillsboro, Ore., and the D2 development facility in Santa Clara. Intel officials have recently declined to comment on the company's capital spending for 2002.