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Intel Budgets $9B Towards Capital Expenditures in 2011

Intel is budgeting $9 billion in 2011 towards capital expenditures, some of which will support manufacturing expansions, IndustryWeek reports. After announcing that 2010 was its most profitable year in its history, Intel said it would add a fourth chip factory to produce next-generation, 22-nanometer microprocessors.

"The primary driver of what's taking us from a three-factory model - three high-volume manufacturing [facilities] to four high-volume manufacturing [facilities] - is the unit growth that we've experienced over the last couple of years and that we expect going forward," said CFO Stacy Smith during an investors' fourth-quarter 2010 earnings call in early January.

The growth increases Intel's capital expenditures budget by $3.8 billion, and will hone in on its PC and server production.

Intel is already planning a new fabrication plant in Hillsboro, Oregon, and upgrades to four existing facilities, two of which are in Hillsboro and two in Chandler, Arizona.

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