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Intel says China could become top Asian customer
( 2002-03-03 10:21 ) (7 )

Intel Corp, the world's top computer chip maker, said on Friday that China was set to overtake Japan as its largest Asian customer within two years.

"The Chinese market has been very strong in growth, which I anticipate will continue," Chief Executive Craig Barrett told reporters on a visit to Tokyo.

"Probably this year or next China will surpass Japan as our largest customer."

Japan accounted for seven percent of Intel's October-December sales of US$6.9 billion while the rest of the Asia-Pacific region made up 35 percent.

Intel has said Asia would increasingly become its biggest source of growth as the region catches up with the rest of the world in computing demand.

China is well on the way to becoming a huge consumer market with its entry into the World Trade Organization while Japan has been mired in an economic slump for a decade.

Barrett said that Intel would continue to develop new technologies, although capital investment would be pared back to about US$5.5 billion this year, compared to US$7.5 billion in 2001.

This year's budget, he said, would mainly go toward equipment for its 0.13-micron manufacturing process and 300-millimeter wafers.