Advertisement

Intel to Spend $2.5 Billion on Facilities, R&D; : Technology: The company is leading a resurgence by the U.S. semiconductor industry. Its 486 chip is a smash hit.

Share
From Times Staff and Wire Reports

Intel Corp., leading a resurgence by the U.S. computer chip industry, said Tuesday that it will spend $2.5 billion on capital equipment and research and development next year.

The ambitious spending program is being driven by heavy demand for Intel’s 486 chip--now the central processor of choice for desktop personal computers--and strong sales of other PC-related products.

The Santa Clara-based company will invest $1.6 billion in plant and equipment next year, up from $1.2 billion last year, while boosting R&D; spending from $800 million to $900 million.

Advertisement

Intel’s aggressive investment plans come amid mounting evidence that the U.S. chip industry has turned the corner in its long battle with Japan’s electronics giants for leadership in the $58-billion market. VLSI Research, a market research company, predicts that the U.S. industry will capture 43.8% of world chip sales in 1992, compared to 43.1% for Japan.

If that estimate holds true, it will be the first time since 1985 that U.S. manufacturers have had the largest market share in semiconductors, the wafer-thin silicon chips that are the building material for computers and other high-tech electronic gear.

Industry analysts caution, however, that market share figures can be misleading because they are heavily influenced by currency exchange rates and volatile prices in some key product segments.

Advertisement