Though the company cut the utilization rate of its factories, it will follow the plan

Oct 17, 2012 08:38 GMT  ·  By

In order to avoid potentially damaging expenses, Intel has reduced the production capacity at its CPU manufacturing facilities, aiming to prevent finances from slowing down any more than they have so far.

With demand for PCs down, some may have been worried that Intel will start thinking of postponing the launch of its next-generation chips.

This won't happen, at least to the Haswell series. The company is reportedly determined to stick to its plan of beginning mass production this quarter (Q4 2012), despite the “tough economic conditions.”

While factory adjustments will bring inventory down by around $500 million / 382 million Euro, the commencement of Haswell production will offset the drop somewhat. No indication of when sales will start tough.

"We expect an increase in inventory reserves as we start production on our next-generation micro architecture product code-named Haswell, which we expect to qualify for sale in the first quarter of 2013," said Stacy Smith, chief financial officer of Intel.