Intel preparing to write off $1 billion worth of failed investments

The chip-maker said margins would likely come in at the low end of projections at around 55 per cent for the quarter. Intel blamed slumping consumer demand for end products and weakness along the global PC supply chain for the problems: it initially expected to post up to $10.9 billion in quarterly revenue.

Intel said investment losses - including a $950 million hit on the valuation of its Clearwire WiMAX network investment - would rocket past a previous $50 million estimate to hit up to $1.2 billion. It also expects to take a $250 million charge on restructuring and declining assets for the rocky quarter, during which it cut spending by $200 million to $2.6 billion.

Clearwire spreads the gloom: Also hit by its Clearwire investment is Time Warner, which yesterday announced its own $350 million loss in the WiMAX venture.