Intel, Thanks!
Intel Corp. plans to spend $7 billion upgrading its U.S. factories over the next two years, a sign that the recession hasn’t extinguished chip makers’ lust for cutting-edge equipment.
The company’s investment, announced Tuesday by Intel CEO Paul Otellini at a speech in Washington, speaks to the semiconductor industry’s need to keep investing heavily, regardless of the poor economic climate that has led Intel to cut jobs.
The investment could be a boon to companies that produce chip-making equipment, like Applied Materials Inc. and KLA-Tencor Corp., and is another example of how Intel’s deep pockets have kept rival Advanced Micro Devices Inc. at bay.
