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Technology Stocks : Intel Corporation (INTC)
INTC 41.41+2.2%Dec 5 9:30 AM EST
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To: Dan3 who wrote (114646)10/22/2000 8:07:38 PM
From: tejek  Read Replies (1) of 186894
 
Re: Intel Delays Opening of Colorado Chip Factory

I don't think that delaying a FAB's opening from a few weeks before the Holidays to a few weeks after them is a big deal - most FABs seem to take longer to build than expected.

Dan,

First this is a renovation so essentially they had to finish off the original design and install equipement. The design and permit process which can take a lot of time were minimal in this case. So its not typical of most fab construction jobs.

Secondly, this is a fab for flash, not semiconductors.....the requirements and equipment are less demanding.

Thirdly, completion has been off put off into next year and not simply "a few weeks" after the holidays. The fab was supposed to be finished this month....last year Intel made a big thing about how they were so desperate for fab space that they were fast tracking this one.

I posted to Engel because he is forever spouting off on the AMD mod thread the design and completion deadlines for a lot of Intel chips and related stuff.Frankly, if the problem is what they say it is, then I don't care. However my experience in development projects has been that when construction problems are blamed on the subs and a sub walks off the job, its very rarely the stated issue. The real issue can be either the owner has run out of $$$ or the demand for the space has diminished. In the case of Intel, the former is highly unlikely.

And you can be assured Intel started the project by paying time and half, or double time in order to fast track this project. Meaning that Intel to date has sunk a lot of $$$ into this project. Furthermore, even in good times, its the rare sub who will walk away from that kind of premium on his contract.

Dan
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