Featured Articles

Intel releases tiny 3G cell modem

Intel releases tiny 3G cell modem

Intel has released a 3G cellular modem with an integrated power amplifier that fits into a 300 mm2 footprint, claiming it…

More...
Braswell 14nm Atom slips to Q2 15

Braswell 14nm Atom slips to Q2 15

It's not all rosy in the house of Intel. It seems that upcoming Atom out-of-order cores might be giving this semiconductor…

More...
TSMC 16nm wafers coming in Q1 2015

TSMC 16nm wafers coming in Q1 2015

TSMC will start producing 16nm wafers in the first quarter of 2015. Sometime in the second quarter production should ramp up…

More...
Skylake-S LGA is 35W to 95W TDP part

Skylake-S LGA is 35W to 95W TDP part

Skylake-S is the ‘tock’ of the Haswell architecture and despite being delayed from the original plan, this desktop part is scheduled…

More...
Aerocool Dead Silence reviewed

Aerocool Dead Silence reviewed

Aerocool is well known for its gamer cases with aggressive styling. However, the Dead Silence chassis offers consumers a new choice,…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Thursday, 28 March 2013 10:53

Intel needs to cut capital expenditure

Written by Nick Farrell



Goldman Sachs does not think it would hurt

Intel needs to save dosh by cutting back on capital expenditure, according to Goldman Sach’s James Covello.

Covello thinks investors expecting Intel will cut some of the $13.5 billion in spending it has planned for this year. For some reason he thinks this is a good thing. His argument is that after spending all of its operating cash flow in seven of the last eight quarters, on capital spending, on dividends, and on share repurchases, net cash fell from $20 billion to $5 billion from Q4 of 2010 through Q4 of last year.

PC inventories are too high, and that Intel has been unnecessarily contributing to that inventory build-up. He said that if Intel were to significantly reduce capex to about $7-$8 billion he would be a lot happier. Covello thinks Intel’s robust capex is created excess supply. At the moment Intel’s 4Q12 fab utilization was about half and PC OEM inventory is near a multi-year high.

He did not believe a small capex reduction would be sufficient to fix the supply problem. To make matters worse Goldman’s hardware team expects 2013 PC units to decline slightly.

Nick Farrell

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments