World’s largest chip maker company registered 23% decline in sales compared to 2007. As the economic slowdown has resulted in lower demand, the company has lowered down its revenue forecast for coming quarters.

The company is now expecting a loss of between $1.1 billion and $1.2 billion instead of $50 million which was expected earlier. Intel spokesman Tom Beermann said that the decline in business was across all the aspects and sections.

Dean McCarron, an analyst at Mercury Research said, "The market for PCs has been deteriorating rapidly. Intel made its estimate in mid-November, and then things got progressively worse each week. We're seeing this fallout hit everyone: makers of PCs and their entire ecosystem"

The lower revenue guidance prominently shows that the economic downturn has affected the semiconductor industry and it also predicts how badly the high-tech industry will be affected for almost a year to come.

Also, due to the lowering value of its $1.6 billion investment in an Internet service provider Clearwire, which specializes in wireless broadband technology WiMax, Intel plans to take $950 million non-cash charge in its fourth quarter. The Morning announcement by Intel has sent its shares tumbling 6%, to $14.44.