Intel, the world’s biggest maker of computer chips, yesterday admitted that the current financial crisis could have a negative impact on its business.

The company said: "There could be a number of follow-on effects from the credit crisis on Intel's business, including insolvency of key suppliers resulting in product delays."

The gloomy outlook was in sharp contrast to statements made by company executives last month, when it said that its fourth-quarter sales may rise, signaling that the global financial crisis had not halted demand for personal computers.

Yesterday, however, Intel said it intends to publish a mid-quarter business update on December 4 as a result of the continuing uncertainty in the economy.

Paul Otellini, chief executive of Intel, told investors on October 14 that he did not expect a repeat of the situation in 2001, when spending on technology fell after the dot-com bubble burst.

He said there were “mixed signs”, with sales of notebooks by private customers helping to offset a slump in corporate orders.

Earlier last month, Intel trimmed its capital spending plans slightly for 2008 from $5.2 billion (£3.2 billion) to $5 billion.

The company has said fourth-quarter sales will be between $10.1 billion and $10.9 billion, compared with $10.7 billion last year, in line with analysts' predictions.

Intel share closed at $16.17 on Thursday on Nasdaq, up just over 8 per cent.



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