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Intel Corporation Message Board

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  • semi_equip_junkie semi_equip_junkie Jan 18, 2013 7:00 PM Flag

    Do analysts really think that Intel's capital spending is without solid basis?

    Do analysts really think that Intel's capital spending is without solid basis?

    There is this BIG noise/stink about Intel increasing capex and nobody really knows what's going on.
    $2 billion are allocated to 450 mm which means it's NOT used to add capacity.
    Intels capex that actually results in (added) capacity is flat - but the media is repeating the same chit over and over again.

    Three months ago....
    In response to end-demand softness, Intel as expected is reducing its 2012 capex "pretty significantly" to $11.0B-$11.6B, a full billion dollars below its trajectory a month ago. CFO Stacy Smith reiterated the reasoning: reign in utilization to clear out inventory until demand recovers, and keep reusing existing equipment in its 14nm node efforts. "We are taking down utilization in the factories down to sub 50% again to take inventory out and free up the opportunity to move both space and equipment and redirect that to 14nm," noted Smith. He specifically declined to issue a forecast for 2013 capex, saying it will depend on unit growth and visibility into 2014 -- but "right now we want to fight through a Q4 where we don't have a lot of visibility before we lock in on a 2013 number."

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