TECHNOLOGY: Computer chip giant Intel last night issued an upbeat mid-quarter assessment of its prospects. The company said sales would be in the $6.6 billion (€7.5 billion) to $6.9 billion range, tightening the earlier guidance of $6.4 to $7 billion.

It also said margins would be above the mid-point of the previously issued range.

Shipments of microprocessors were following seasonal patterns, it said. The company's assessment of the outlook for the semiconductor market will be a key element in its decision on restarting construction of a $2 billion fabrication plant (Fab 24) at its Leixlip, Co Kildare, facility that would employ an extra 1,000 staff.

Construction of the facility, which will be capable of manufacturing chips much more efficiently than existing plants, was halted last year as Intel slashed its capital expenditure budget.

Signs of improvement in the chip market provided by the Semiconductor Industry Association and several big chip firms this week will boost prospects for Fab 24.

Although semiconductor sales plunged 40 per cent in January compared to the same period last year, the association said there were faint signs of better times ahead. It reported that the first quarter may see some slight sequential growth with some improvements later in the year.