Intel Boosts Spending by $1 Billion to Head Off PC Shortages

  • Chipmaker says it still expects to reach annual targets
  • Investment to increase production in U.S., Ireland, Israel

Photographer: David Silverman/Getty Images

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Intel Corp., which dominates the market for personal computer processors, said it’s taking steps to increase output and alleviate a shortage that had threatened to slow the industry’s growth.

The Santa Clara, California-based chipmaker has added an extra $1 billion to its capital equipment budget this year, increasing output from existing facilities in the U.S., Ireland and Israel. The company said it’s been surprised by a return to growth in demand for personal computers. Total spending in 2018 will be $15 billion, Intel said in a letterBloomberg Terminal to customers posted on its website Friday.