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Technology Stocks : Intel Corporation (INTC)

INTC 42.84

+7.0%

12:14 PM EST

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To: Dan3 who wrote (125196)	1/17/2001 8:45:24 AM
From: Dan3	Read Replies (2) of 186894

As they are made today, Pentium 4 chips are slightly larger than Pentium III's. Intel can make fewer chips per wafer of silicon, and the larger size creates more defective chips. By the end of the year, new production methods will bring the manufacturing costs below $60 a chip from $100 today, said Kevin Krewell, a senior analyst with MicroDesign Resources, of Santa Clara. Mr. Krewell said he expected Intel to ship as many as 27 million Pentium 4 chips this year, compared with only hundreds of thousands in 2000. Other analysts expect Intel to ship less than 20 million. nytimes.com Looks like costs are going way, way, up for Intel. But in the current market, that's OK, right? It's only in low demand, overcapacity markets that cost becomes a compelling issue for semiconductors. Dan

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