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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: RR who wrote (54391)	8/13/2002 1:22:37 AM
From: Dealer	Read Replies (3) \| Respond to of 65232

INTC--Intel, Shaking Off Downturn, Expected to Unveil New Chip Technology Intel Corp. (NasdaqNM:INTC - News) plans to unveil today a new technology for making computer chips, part of a big bet that it can overpower its rivals amid a deep downturn in high-tech, Tuesday's Wall Street Journal reported. ADVERTISEMENT The new production process is the latest evidence of Intel's previously announced $12.5 billion spending binge over two years on manufacturing technology. The Santa Clara, Calif., chip maker expects the latest process to yield the world's smallest transistors in large-scale production. Smaller circuitry on chips boosts their performance and reduces production costs. Intel's big investments come at a time when business capital spending in general is way down, and the economy is widely viewed as needing a boost in big- ticket orders to stage an enduring comeback. Intel hopes that by investing now it will get a jump on rivals when the economy improves. The company's dominant position in supplying the brains for most personal computers has allowed it to remain more profitable than most competitors amid the current downturn. By staying the course on capital spending, Intel could wind up with strong advantages in the capability of its chips and its ability to churn them out in big volumes. But if Intel has guessed wrong about the timing and strength of an economic recovery, or long-term demand for increased computing power, the company's impressive new production lines may wind up operating at a fraction of their capacity -- a miscalculation that could hang over Intel's income statement for years to come. Wall Street Journal Staff Reporter Don Clark contributed to this report.