Intel's Otellini worries about PC "pinch points"

HUNTINGTON BEACH, California Tue Nov 17, 2009 8:05pm EST

The Intel logo is advertised on a computer at an electronic store in Phoenix, Arizona November 4, 2009. REUTERS/Joshua Lott

The Intel logo is advertised on a computer at an electronic store in Phoenix, Arizona November 4, 2009.

Credit: Reuters/Joshua Lott

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HUNTINGTON BEACH, California (Reuters) - Intel Corp Chief Executive Paul Otellini said on Tuesday the semiconductor industry may experience possible "pinch points" in the PC production chain as manufacturers ramp up to meet higher demand next year.

Otellini told Intel Capital's CEO Summit that the industry may face a component shortage in the face of a forecasted rise of 12 percent to 18 percent unit growth from 2009 to 2010.

"The industry is not ready for this yet," Otellini said. "One of the things I worry about is, will everybody's capacity be there in sufficient quantities to build it?"

Last month, Seagate Technology Chairman and CEO Stephen J. Luczo left open the possibility in an interview with Reuters that there could be shortages of disc drives next year if conditions keep improving.

(Reporting by David Lawsky and Gina Keating; Editing by Gary Hill)

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