CHIPS DOWN FOR INTEL

INTEL, headed up by chief executive Paul Otellini, cut its first quarter revenue forecast by $300m yesterday due to the costs associated with correcting a design flaw it discovered in one of its chips. Intel said it has stopped shipments of the chip and has implemented a fix. It will begin delivering an updated version of the chip to customers in late February. Total cost to repair and replace the chip is expected to be around $700m, it said.