Intel boosts spending to reduce PC shortages

[Jamie McKane]

Intel boosts spending to reduce PC shortages

Intel Corp., which dominates the market for personal computer processors, said it’s taking steps to increase output and alleviate a shortage that had threatened to slow the industry’s growth.

The Santa Clara, California-based chipmaker has added an extra $1 billion to its capital equipment budget this year, increasing output from existing facilities in the U.S., Ireland and Israel.

[Bloomberg]

 

[Neoprod]

Intel shares gained 3.1 percent to $47.29 at 1:08 p.m. in New York, after jumping as much as 4.1 percent on the announcement. Rival Advanced Micro Devices Inc. fell as much as 8 percent on concern that increasing production by Intel will deprive it of the opportunity to gain market share.

Intel wins even when they lose