Intel mothballs fab, predicts ‘flat’ year, looks to shrink payroll
An interesting week for Intel, with the headline being its ceo's admission that it overestimated demand for pc processors.
At the beginning of last week, it responded to stories - it certainly didn't instigate them - that it was to mothball Fab 42 in Arizona, which was intended to take 14nm processors into volume production. Apparently, equipment originally ordered for Fab 42 has been delivered elsewhere and the fate of the $1billion shell is unknown.
Then it held its latest financial update, in which it predicted 'flat' growth for 2014. One of the consequences is a $50bn plus company looking to lose 5,000 employees to keep costs under control.
Intel really is the electronics equivalent of the supertanker. With sales of PCs declining and not expected to revive, Intel is frantically trying to address new markets. But the overiding impression is of a company which is out of its comfort zone.
