Intel will not stock up for Y2K

In a worst-case Y2K scenario, the breakdown municipal supplies of either water or electricity would bring production at semiconductor plants to a grinding halt. Intel for one, is betting this will not happen and announced it has no plans for boosting production in an effort to create a stockpile of Pentium processor and other chips in order to compensate for any temporary breakdown in vital utility resources.

Intel’s refusal to stockpile products was revealed in a required report filed with the Securities and Exchange Commission (SEC). Instead, Intel said it has been working with the infrastructure suppliers for its various manufacturing sites to ensure continuity of services. "Contingency planning regarding major infrastructure failure may include considering increases in inventory levels above normal reserve stocks or evaluating the need to relocate inventory geographically," Intel said in the SEC filing. "The company currently believes that it will not be necessary and therefore does not intend to maintain a buffer of additional finished goods inventory." Overall, Intel said its Y2K readiness expenses would reach $120 million.