Kingston to Increase Capacity at O.C. Memory Chip Factory

Kingston Technology Co. Inc. said Tuesday that it will spend $15 million to increase its manufacturing capacity as part of a second deal with Intel Corp. to distribute computer memory modules that support the new Pentium 4 chips.

Additional production lines at its Fountain Valley facilities should increase capacity 20% to 30% overall, said Wai Szeto, vice president for strategic business development.

Kingston expects to hire more employees this year, but Szeto said the company isn’t sure how many will be needed. The Fountain Valley maker of computer memory products employs more than 1,500 people in Orange County.

The additional contract with Santa Clara chip maker Intel follows one announced in November.

Kingston said then that it was committing $75 million to offer the Pentium 4 memory modules for second-tier computer makers. The money will be spent on marketing and rebates to customers to help build market share for Kingston and the Pentium 4.