Intel launches $7 billion fightback

 

Gallery

By Reuters

Posted on 11 Feb 2009 at 09:06

Intel plans to invest $7 billion in the next two years, as it steamrollers toward 32nm technology.

The money will go towards building the next-generation of processing plants; the "tick" of Intel's tick/tock strategy which sees it alternate manufacturing process research with development of new micro architecture.

The investment is the company's largest-ever spending plan for new technology, and comes amidst a deepening economic recession and huge internal job cuts.

"You never save your way out of recession. You invest your way," says Intel spokesperson Chuck Mulloy, announcing the company's plan to manufacture the new chips in larger volumes than previously planned in order to get them into mainstream products quicker.

The plan comes less than a month after Intel said it would close plants in Southeast Asia and scale back US operations under a restructuring that affects as many as 6,000 employees.