Intel's chief executive Mr Craig Barrett said today that his company, still plans to spend $7.5 billion in capital spending this year, as well as $4.2 billion on research and development.
Many analysts have expressed increasing scepticism that Intel would indeed spend the full forecasted amount, given a downturn in demand for personal computers and a slowing US economy.
"Intel continues to see a seasonal uptick in the second half of the year," head of sales Mr Michael Splinter said.
He was reiterating comments made by the company's chief financial officer Mr Andy Bryant last week when the company reported first-quarter net income that dropped 82 per cent.
"There are indications now showing that we are at the bottom of the trough," Mr Bryant said.
"Inventories among its(Intel's) customers, PC makers, are now back at historical levels," Mr Splinter said - following a buildup in the fourth quarter last year.
