network logoeetimestechonlineembedded
United Business Media EE Times


Search

HOMELATEST NEWSSEMICONDUCTORSMOST POPULARMARKET INTELLIGENCE UNITFORUMSDESIGNNEW PRODUCTSCAREERSBLOGSCONTACTEVENTSSIGN UP!RSS

 

Morningstar analyst says Intel will admit to cutting capital spending








Silicon Strategies
(03/29/2001 4:04 PM EST)

CHICAGO--Another financial analyst is predicting that Intel Corp. will soon buckle to the chip recession and cut capital spending from the company's current budget of $7.5 billion. In a new report, Morningstar Inc. analyst Jeremy Lopez said it is only a question of how much Intel will cut back from its record capital spending plans.

Until now, however, Intel executives have insisted that the Santa Clara, Calif., chip giant has no plans to lower its $7.5 billion budget this year, despite the fact it has pushed back a number of major projects. Earlier this month, Intel confirmed it was delaying a 300-mm wafer fab in Ireland (see March 14 story).

Lopez is also predicting an end to the recent rise in semiconductor equipment stocks because of new cuts in plant investments. He noted that the tech-heavy Nasdaq exchange has fallen 25% in the past three months but chip-equipment shares have edged up 6%.

Based on current capital spending budgets, Morningstar expects the top 20 semiconductor companies to reduce their 2001 budgets by at least 15%. Chicago-based Moringstar noted that these chip companies represent 70-to-80% of chip-equipment spending worldwide.

"This outlook may be dim, but it may get even worse," Lopez said. "The chip industry's biggest rollers, Intel and Samsung, likely will reduce their spending forecasts going forward. With their current capital-expenditure numbers buttressing an already poor forecast, we find it very unlikely these giants will bail out the chip-equipment industry.

"The question isn't whether or not Intel and Samsung will cut their spending, but rather by how much," he said.











  Free Subscription to EE Times
First Name Last Name
Company Name Title
Email address
  Click here for your Free Subscription to EETimes Europe
 
CAREER CENTER
Ready to take that job and shove it?
SEARCH JOBS
SPONSOR

RECENT JOB POSTINGS
CAREER NEWS
Federal CTO Sees IT Leading U.S. Out Of Recession
Aneesh Chopra is looking to other CIOs to advise him on fleshing out a more detailed agenda to best serve the president's IT agenda.

For more great jobs, career related news, features and services, please visit EETimes' Career Center.



All White Papers »   

  Around Silicon Strategies

FPGA startup crunch: These articles are part of a series that examines the status of various FPGA startups in light of the economic recession. Startups Abound Logic, Achronix Semiconductor and Cswitch are all on the hot seat. More...

10 fab technologies on the hot seat: There's trouble brewing in chip-making paradise. Delivery of chips at 32-nm and beyond won't be a cool breeze. EE Times has constructed the following list of 10 fab technologies that could make or break future IC scaling. More...

6 fab technologies on the bubble: It isn't going to be a slam-dunk to deliver chips at 32-nm and beyond. See our story about 10 fab technologies on the hot seat. Then read this article: 6 technologies on the bubble. More...

Our take on Intel-River: With its acquisition of embedded software leader Wind River Systems Inc., Intel Corp. has unambiguously signaled that it is again attempting to diversify beyond X86 processors. Here's our take on the deal. More...

CEVA's reversal: When Gideon Wertheizer, CEVA's CEO, came to New York to ring the closing bell at Nasdaq to celebrate the company's 10th year anniversary, he talked about CEVA's 21.6 percent revenue growth in 2008. More...

Hot technologies to watch for in 2009: Every technologist, marketer, industry analyst and reporter on a hunt for the next big thing is bracing for the 2009 Consumer Electronics Show scheduled less than a month away. More...

Top 20 predictions for semis in 2009: To help sort out the confusion in the market, EE Times has released its own chip forecasts--and other predictions--for 2009. So, what will happen in analog, FPGAs, foundry, memory, MPUs and other sectors? More...

Silicon 60 version 8.0 The EE Times 60 Emerging Startups list, first published in April 2004, has been updated to version 8.0 to reflect the latest corporate, commercial, technology and market conditions. More...

 
Education and
Learning


Learn Now:



Home | About | Editorial Calendar | Feedback | Subscriptions | Newsletter | Media Kit | Contact | Reprints|  RSS|   Digital|  Mobile
Network Websites
International
Network Features




All materials on this site Copyright © 2009 TechInsights, a Division of United Business Media LLC All rights reserved.
Privacy Statement | Terms of Service | About