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To: Asymmetric who wrote (10499)11/25/1997 8:17:00 AM
From: rsc  Respond to of 25960
 
Intel spends $1B on flash

Looks like Intel is still interested in flash memory. Earlier the firm had scrapped flash production plans for its new Israeli fab in favor of logic chips. This had prompted observers to question whether Intel might be losing faith in flash in light of its declining market share. Its share will run 33% this year, says Semico Research, down from 40% in '96.

But in a move to silence such talk, Intel said it will spend $1B over the next year to re-tool one of its flash-making fabs in Albuquerque, N.M. The fab will be upgraded to 8-inch wafers and 0.25-micron linewidths, Andrew MacLellan reports in EBN.

But given the big drop in flash prices this year, it isn't likely Intel will repeat its '96 sales performance of $950 million, says Semico's Alan Niebel. "Looking at the way Intel is scrambling, they'll be lucky to get to $900 million this year," he says.

techweb.cmp.com