Intel chief executive Mr Craig Barrett said yesterday that a deceleration in the global computer industry had put off a decision on whether to build a new chip plant in Israel. The move mirrors an earlier decision to put expansion at its Leixlip's plant in Co Kildare on hold.

"We have not made a decision to go forward for economic reasons," Mr Barrett told reporters in Jerusalem. "There is a slowdown in the industry and that's tempered the need for expansion. But we are still evaluating our options."

He said that the soon-to-be-released XP operating system from Microsoft could help revive computer sales.