Monica Chen, Taipei; Joseph Tsai

 

Intel, facing weak PC performance, reportedly is considering to temporarily halt its plans to upgrade to a 22nm process at Fab 24, and has decided to delay the launch of its next-generation Ivy Bridge platform by a quarter to save costs. However, sources from PC players believe such plans may impact the company's PC partners as well as some semiconductor equipment players in the short term.

Intel has recently decided to delay its Ivy Bridge platform launch from the end of 2011 to March 2012, while notebook models with the new platform will start appearing in the channel in April to allow a smooth transition between the existing Sandy Bridge platform and the new platform.

Since Intel internally has evaluated that PC demand for the upcoming year may not be as strong as before, the company has recently adjusted its investment schedule for semiconductor equipment. In early 2011, Intel had planned a budget of US$500 million to upgrade Fab 24. Although the investment amount has not yet been changed, Intel reportedly is considering halting the plans and may reduce related capex.