Intel Says Design Error Will Reduce Sales, Margins
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Intel Corp., the world’s largest maker of semiconductors, said it will incur $1 billion in missed sales and higher cost to fix a design flaw in one of its chips.
The error will cut first-quarter revenue by $300 million and gross-profit margin by 2 percentage points, Intel said in a statement today. The company will spend $700 million to replace potentially faulty chips and systems. Intel shares fell and rival Advanced Micro Devices Inc. climbed.