According to associate , the average occupancy rate of Intel factories for the production of chipset does not exceed 60%, whereas in the good years, it often reached 95%. This means that the company has fixed costs necessary for the maintenance of production facilities, staff and equipment.
Moreover, existing plants and construction on this background has slowed. In the case of already built Fab 42 in Arizona Intel do no hurry to deliver equipment. Instead, it is sent in small amounts in Oregon. It is expected that after the election of a new CEO in May, Intel will be forced to cut staff, involved in the production.
Intel has a quite flexible approach to manage inventory. Since September, some semiconductor manufacturers stopped buying new raw materials, developing the existing stock. Accordingly, the decline in production is characteristic of many players in the market, and Intel is simply one of the largest.
Intel attempts to find new customers for contract manufacturing of semiconductors are understandable - it is better load capacity by foreign products than silently and proudly bear the costs.