Intel delays planned opening of Ireland plant by a year

December 13, 2000 (Computerworld)

Intel Corp. today said it plans to delay the opening of a new semiconductor plant in Ireland by a year, moving the scheduled start of production back from the second half of next year to late 2002.

Officials at Intel couldn't be reached for comment today on the delay at the facility in Leixlip, Ireland. In its announcement, Intel said executives at the company decided to retool the plant so that its production lines will use more advanced manufacturing technology built around larger silicon wafers than was originally planned.

But the disclosure of the change in plans also comes on the heels of a fourth-quarter financial results warning that Intel issued last week (see story). The company said its results will be lower than expected because of a slowdown in demand for PCs -- a trend that's also affecting computer makers and Intel's microprocessor rival Advanced Micro Devices Inc. in Sunnyvale, Calif.

This will be the second straight quarter in which Intel's earnings have come in below expectations. AMD matched Intel's fourth-quarter warning with one of its own yesterday (see story), and PC vendors such as Compaq Computer Corp., Gateway Inc. and Apple Computer Inc. have done the same in recent weeks.

As part of the retooling of the plant being constructed in Ireland, Intel plans to upgrade its production lines from eight-inch silicon wafers to ones that are 12 inches in diameter. The facility will be Intel's second plant that can handle wafers that big, following another one that Intel said is near completion in Hillsboro, Ore.

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