Intel Says Investment Plans on TrackBy Reuters | Posted 2008-10-28 Email Print
The market-leading chipmaker says its global manufacturing and marketing plans are going as planned, but some obstacles related to the economic downturn are unavoidable.
BEIJING (Reuters) - Chip giant Intel Corp's chief executive said on Tuesday that its investments around the world are proceeding as originally planned, but that some disruption from the global financial crisis was unavoidable.
"I would expect to continue all of our investments we have committed to in China and around the world," Chief Executive Paul Otellini told reporters in Beijing.
Otellini said the recent restructuring at Intel had reduced its cost structure and was helping it weather the financial turmoil better than most companies.
While Otellini said financial institutions could survive the crisis better by investing more in information technology, he conceded that his company would also be affected.
"It is reasonable to assume that with the number of financial institutions around the world in trouble that there will be some disruption in their purchases," he said.
The company trimmed its 2008 capital spending plans slightly to around $5 billion from $5.2 billion.
Intel's $2.5 billion microchip plant in China's northeast is still on track to begin production in the first half of 2010, Otellini said.
In addition, the California-based Intel said demand for its Atom processor -- a smaller, lower-priced processor for use in new mobile computers that are smaller than conventional notebooks -- was surprisingly strong and it was ramping up production.
"I would expect our supply would catch up to demand by the end of the year," said the executive.
The company posted a 12-percent rise in quarterly profit earlier this month, edging Wall Street estimates, as investors said Intel was benefiting from one of its strongest product line-ups in years, is executing well and keeping a lid on costs.