Swindon based Microchip giant Intel anticipates a recovery in the beleaguered high-tech sector.

Craig Barrett, chief executive of the US semiconductor giant, told a conference in Spain that the long-awaited rebound was just around the corner.

"I have never been more optimistic on the future than I am right now, even in the middle of a recession," he said.

Intel, the world's leading manufacturers of microprocessors, employs about 750 people at its European administrative base in Pipers Way, Old Town.

Although the firm has weathered the technology slump better than most of its rivals, it has not predicted an upturn in public statements this year.

Mr Barrett said he expected conditions for technology firms to improve in early 2003 with telecommunications companies emerging from the downturn the following year.

So confident was he of the recovery, he told the conference, he has a horse on his Arizona ranch which he has christened Nasdaq.

Next week Intel gives a trading update for the third quarter when market watchers hope Mr Barrett's optimism is endorsed.

In August Intel said it was using advanced technology to double its output over the following 12 months.

In doing so it hopes to be at least a year ahead of its rivals and enable it to boost the speed of its chips while reducing power consumption essential for the growing number of mobile phone computing devices.

By doubling the number of chips produced per wafer, the firm believes it will significantly cut manufacturing costs per chip and help boost profits, which have been under pressure due to the slowdown in demand for personal computers.

Intel is using 300mm silicon wafers instead of 200mm wafers widely used for chip making, and using cutting edge developments to shrink components.

Next year the firm will be the first chip maker to use "strained silicon", a new form of silicon that boosts electron flow, in turn improving performance.