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Technology Stocks : Intel Corporation (INTC)

INTC 49.98

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10:44 AM EST

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To: Robert G. Bianchi who wrote (12903)	3/2/1997 7:59:00 AM
From: Paul Oberlin	of 186894

Bob, As I said, all semi mfrs will have yield problems, but I took issue with Chuckie's statement because I percieved it to say that Intel continually has yield problems that are negatively affecting the entire production line. Not true. Yes, yield issues appear frequently,but are usually quickly resolved. Ongoing yield issues, especially the same ones, often indicate a design or maybe even test flaw. Yes, Intel said margins would slip - plus or minus a few points, and due to the huge capital expenditures thay are currently making to bring up new fabs - not yield problems. Paul O.

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