Intel Corp, the world's largest semiconductor maker, said today its emerging market businesses would be a key component of its sales growth over the next few years.
Speaking in Manila, as part of a tour of Intel's Asian operations, new President and Chief Operating Officer Mr Paul Otellini said: "Emerging markets have really helped us with the downturn (in the industry last year) and will represent a very significant part of sales over the next four to five years."
In 2001, the Asia-Pacific region, excluding Japan, contributed 35 per cent of the company's total revenue with the Americas bringing in 33 per cent, and Europe 25 per cent. Japan contributed seven per cent.
The company has earmarked around $5.5 billion for global capital expenditure this year, with a further $15 billion to be spent from 2003 to 2005, Mr Otellini said. Around $4 billion will go into research and development this year.
He declined to give 2002 sales projections for the company but said he saw an improvement, after the sharp industry slump in 2001.
"In 2002, I am optimistic of growth," he said, adding "in the first quarter we saw servers coming back and notebooks coming back and that's a good sign," he said at a news conference.
The replacement of aging computers with newer technology equipment would be a key growth driver going forward, he said.
Last week, the firm said in San Francisco that it now sees its first quarter sales revenue at between $6.6 to $6.9 billion compared with its January forecast of $6.4 to 6.7 billion.
Intel's Leixlip plant employs some 3,150 hi-tech workers.
Analysts expect the company to post second quarter revenue of $6.84 billion, up 1.1 per cent from projected first quarter revenue of $6.77 billion.
Mr Otellini said that the company's capital spending would be focused on upgrading existing facilities to handle new technology products rather than the construction of new plants.