■ Semiconductors
Intel delays chip update
In the latest misstep for the world's largest chip maker, Intel Corp said a faster version of its flagship Pen-tium 4 microprocessor will not be available by the end of the year as previously pro-mised. The company told PC makers this week that the 4-gigahertz chip will not ship until the first quar-ter of next year. Currently, the fastest model runs at 3.6 gigahertz. "We felt by adjusting the schedule for the products, we could better meet our customers' volume requirements and their high expectations," said Intel spokeswoman Laura Anderson on Friday. She declined to elaborate on the reason for the delay. Last week, chief executive Craig Barrett sent a message to all employees urging them to "focus intensely on actions and attitudes that will con-tinue Intel's strong track record."
■ Labor
Subsidies suggested
A senior member of Singa-pore's labor federation has suggested that the govern-ment subsidize low-paid workers to reduce the city-state's dependence on foreign laborers, a news report said yesterday. Offering incentive packages for jobs with meager pay might attract Singaporean workers, The Straits Times newspaper quoted Ong Ah Heng, secretary general of the National Trades Union Congress, as saying. "A local may be willing to do the job, but when he receives the payroll, how is he going to pay his bills?" Ong was quoted as saying. He suggested the govern-ment provide subsidies of S$300 to S$400 (US$175-US$240) a month to supplement salaries for workers such as grass-cutters, which can be as low as S$700, the paper said. Singapore's labor leaders have warned in the past few weeks that the country faces rising structural unemployment and might need to reduce its high number of foreign workers.
■ Crime
Enron's Rice pleads guilty
Kenneth Rice, the former head of Enron Corp's high-speed Internet unit, pleaded guilty on Friday to one count of securities fraud and agreed to cooperate with federal prosecutors pursuing other cases related to the company's collapse. Rice faces a maximum of 10 years in prison and a fine of up to US$1 million. Sentencing was set for Jan. 31. The plea agreement with federal prosecutors also requires him to forfeit US$13.7 million in cash and property. Rice was charged n May last year with selling 1.2 million shares of Enron stock for more than US$76 million while he knew Enron Broadband Services was failing. The Justice Department says the unit never made a dime and was abandoned shortly after Enron's bankruptcy filing in December 2001.
■ Aviation
Alitalia losses grow
Italy's troubled airline Alitalia announced on Fri-day that it had incurred losses of 330 million euros (US$400 million) in the first half of this year. Net losses last year were 519.2 million euros compared to a profit of 93.1 million euros in 2002. The board of Alitalia also gave its go-ahead to the broad outlines of a rescue plan put forward by the airline's new boss Giancarlo Cimoli aimed at balancing the books by the end of 2006. The restruc-turing scheme is based on reduced staff costs, estab-lishing alliances and outsourcing activities such as airport services and aircraft maintenance.
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has appointed Rose Castanares, executive vice president of TSMC Arizona, as president of the subsidiary, which is responsible for carrying out massive investments by the Taiwanese tech giant in the US state, the company said in a statement yesterday. Castanares will succeed Brian Harrison as president of the Arizona subsidiary on Oct. 1 after the incumbent president steps down from the position with a transfer to the Arizona CEO office to serve as an advisor to TSMC Arizona’s chairman, the statement said. According to TSMC, Harrison is scheduled to retire on Dec. 31. Castanares joined TSMC in
EUROPE ON HOLD: Among a flurry of announcements, Intel said it would postpone new factories in Germany and Poland, but remains committed to its US expansion Intel Corp chief executive officer Pat Gelsinger has landed Amazon.com Inc’s Amazon Web Services (AWS) as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker. Intel and AWS are to coinvest in a custom semiconductor for artificial intelligence computing — what is known as a fabric chip — in a “multiyear, multibillion-dollar framework,” Intel said in a statement on Monday. The work would rely on Intel’s 18A process, an advanced chipmaking technology. Intel shares rose more than 8 percent in late trading after the
FACTORY SHIFT: While Taiwan produces most of the world’s AI servers, firms are under pressure to move manufacturing amid geopolitical tensions Lenovo Group Ltd (聯想) started building artificial intelligence (AI) servers in India’s south, the latest boon for the rapidly growing country’s push to become a high-tech powerhouse. The company yesterday said it has started making the large, powerful computers in Pondicherry, southeastern India, moving beyond products such as laptops and smartphones. The Chinese company would also build out its facilities in the Bangalore region, including a research lab with a focus on AI. Lenovo’s plans mark another win for Indian Prime Minister Narendra Modi, who tries to attract more technology investment into the country. While India’s tense relationship with China has suffered setbacks
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