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Technology Stocks : Intel Corporation (INTC)

INTC 48.23

+2.3%

Feb 11 3:59 PM EST

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To: Andy Chen who wrote (3958)	10/9/1996 1:05:00 PM
From: Paul Engel	of 186894

Andy - Re ": Intel & ASICS" Intel tried this about 10 or 12 years ago during their last big downturn. They failed miserably, or at least they decided that their corporate make-up wasn't suited to this business. They were trying to get in as LSI, VLSI, NEC, Fujitsu were just getting their ASIC programs running in high gear. This was a fortuitous failure. The ASIC business is brutal with high up front costs, customer hand holding and razor thin margins. Intel has never been successful in real low margin arenas. Their (Intel's) strong suit has been their creativity and exploitation of this in high volume, high profit proprietary products. Paul

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