On Thursday, the world's leading chip manufacturer's stock in after-hours trading fell more than 5% this year, is expected to capital expenditure for 13 billion dollars, plus or minus $5 million, more than many analysts' forecasts for about $1 billion.
Intel said, $200 million spending will increase to expand facilities, for future manufacturing technology research. Some analysts worry, along with the PC sales growth has slowed down, too, may cause overcapacity, it would hurt the bottom line.
"People into overdrive capital spending about said," Sanford c. Bernstein analyst stasi Rasgon. "The fear is that if I spent a lot of money, I establish my factory, I don't have enough demand to fill them, and they have a very high fixed cost, pull your profits."
To the chief executive Paul otellini plan after retiring successor is determined, in manufacturing investment will reduce the cost, in the long run.
"Front ability for us is the lowest cost of each unit, based on the" otellini told analysts conference call. "Whatever you think of the size of the market, leading wafer factory is the most important asset we have."
Otellini said, not going to higher capital spending money OEM contract chip manufacturing business, but he would not rule out other manufacturing semiconductor chip company, as long as no authorized opponent.
According to bloomberg reports, on Thursday, Intel has agreed to represent the network equipment company cisco system production custom chip. Intel's spokesman declined to comment.
In the fourth quarter, Intel's income is $135 billion, a $13.9 billion in the same period last year. Analysts had expected for 1.353 billion dollars.
It is estimated that the first quarter sales income of us $12.7 billion, plus or minus $500 million. Analysts expected for 1.291 billion dollars.
Struggle in the MOBILE
Intel is used to the king's personal computer market, especially through and Microsoft, this led to a high profit margin and 80% market share, its a long history of Wintel alliance.
But it has been trying to adapt to the technology used in intelligent mobile phone and tablet PC market dominant qualcomm, samsung electronics co., LTD. And NVIDIA ? (British weida ?) the company's personal computer makers are trying to stop the decline in sales, because consumers postpone buying new notebook computer, support more agile mobile small tools.
Microsoft long-awaited Windows and in October introduced a touch screen laptop computer, but no spark, Intel and many PC manufacturers hope that in the sales of recovery.
Intel's huge investment plan reflect its of confidence in the future, even the Wall Street worry about Intel's struggle, get the traction on the mobile market.
"Our core advantages in the production is really our leading position in the field," chief financial officer stasi Smith told Reuters. "450 will bring us significant cost advantage, relative to the other."
Intel is expanding the wafer factory, located in Oregon Hillsboro, Oregon, 450 mm silicon wafer manufacturing chip technology development, complicated procedure, from the current 300 mm wafer standard.
Big, because more chips, be engraved on each person's savings can be transformed into larger wafers. However, the construction of 450 mm factory is expected to be very expensive, only a few of the industry leaders, including Intel, samsung and TSMC, is expected to have the necessary scale.
Some Wall Street analysts expected this year to Intel the working efficiency of the high evaluation.
"Income won't have, but the rate of gross profit and cost control will be stable bottom line, said:" Cody acre in Williams, financial analysts. "I think it might be a success, if you can be a flat one industry, most of people are expected to steady have fall."
Intel is expected the first quarter gross margin of 58%, to fluctuate two percent. Analysts expected average about 56% gross margin, this quarter, according to the townsend Reuters I/B/E/S.
It is estimated that 2013 gross profit margin was 60%, plus or minus a few percent. Analysts had expected an average of 59%.
In the fourth quarter of last year net profit of $2.5 billion, or earnings per share and cents from the same period last year, $3.4 billion, or 64 cents per share, the same period last year.
Analysts had expected 45 cents, and said, strong performance accident is due in part to a lower effective rate is 23%. This is about 27% lower than Intel's forecast.
However, Intel shares in after-hours trading, fell 5.6% to $21.43, listed on the nasdaq, closed up 2.58% at $22.68.
, "RBC capital analyst doug friedman said," this is a company, is in the market to continue to spend money. This may involve some investors.



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