Intel pushing out tool deliveries in 300-mm fab, report says
Semiconductor Business News
(07/15/02 18:29 p.m. EST)
SANTA CLARA, Calif. -- In what could cast a shadow at the Semicon West trade show this week and next, Intel Corp. has reportedly pushed out the chip-equipment deliveries for its high-volume, 300-mm wafer fab in New Mexico, according to a report from Deutsche Banc Alex Brown in San Francisco today.
The microprocessor giant could also cut its 2002 capital spending plans by up to 20%, according to the report. Given that Intel is the world's largest buyer of semiconductor equipment, the reported cut in capital spending could be bad news for tool makers heading into Semicon West. The event runs July 17-19 in San Jose and July 22-25 in San Francisco.
A spokesman for Intel declined to comment on the report, saying the company is in the "quiet period." The company, which is expected to announce its results on Tuesday, recently lowered its second-quarter forecast due to sluggish PC sales.
The ongoing PC slowdown may impact its fab expansion plans, according to analysts. While other 300-mm wafer fabs remain on track for Intel, the report from Alex Brown suggests that the Santa Clara-based company has pushed out the equipment deliveries at Fab 11x in Rio Rancho.
Originally announced about two years ago, the fab is Intel's initial, "high-volume" 300-mm plant. The Fab 11x plant is expected to ramp up in the second half of this year. It will make microprocessors and other products, according to analysts.
“Regarding recent sentiment that Intel may be pushing out some equipment, we talked to some contacts late last week and confirmed there has been a slight slippage in [Intel's] 300-mm plans,” the report said.
“We believe [Intel] has pushed out some equipment deliveries for Fab 11x in New Mexico--particularly lithography tools (Nikon and others), but also other non-litho process tools,” the report said.
There is more bad news for chip-equipment makers. “As a result of such pushouts, suppliers are suggesting that actual 2002 capex for Intel may be $4.5-to-$5 billion vs. current $5.5 billion plan,” the report said.
“While other [Intel] 300-mm fabs (D1D in Oregon, and Fab 24 in Ireland) remain on track, this means that virtually every chip maker with 300-mm production fabs underway has pushed out to some degree during the past 3-6 months,” it added
