Intel will not make Deschutes chips in its Texas factory in 1999 because poor demand for flash memory has forced it to change its spending plans.
The opening of Intel?s Texas chip factory will be delayed by a year and the $1.3 billion factory will now open in 2000 instead. Intel has decided to convert a $1.6 billion Israeli site, due to open in 1999, to manufacture both flash memory and processors.
An Intel representative blamed poor demand for flash memory for the change to the company?s spending plans but insisted Intel?s ideas have been postponed rather than cancelled. He said flash memory chips may be built at the Texas facility and the Israeli site will manufacture other logic memory chips.
Despite the reshuffle, both plants should use 0.18 micron technology. Intel reported disappointing third quarter results two weeks ago.
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