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#Business

Intel stalls production plans at Arizona plant

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World’s chip making leader, Intel Corp, has decided to delay the opening of its new factory in Arizona owing to a drop in demand for personal-computer microprocessors.

The “Fab 42” Arizona plant, which was expected to commence production of company’s most advanced chips in late 2013 is yet to house any chip making gear and will remain shut for the foreseeable future said Chuck Mulloy, Intel spokesman. The company will rather first focus on upgrading the other three factories on the site, added Mulloy.

Mulloy said that “The new construction is going to be left vacant for now and it will be targeted at future technologies.”

“The newer fab has not been equipped with the capital equipment. It has heating and air conditioning but the actual tools, the expensive stuff, are not in there”.

According to research firm, IDC Corp, PC shipments in 2013 fell around 10 percent marking the steepest annual decline on record. The downfall is projected to persist in 2014, with around 3.8 percent drop in unit sales.

The delay in Fab 42’s opening won’t impact the company’s total output in any manner, Mulloy said. Intel, which will report its fourth-quarter earnings on Jan 16, expects its revenue to be flat in 2014 compared to last year.

[Source: The Arizona Republic]