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Technology Stocks : Intel Corporation (INTC)

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To: wily who wrote (148790)	11/18/2001 10:19:47 PM
From: Paul Engel	Read Replies (1) of 186894

Wily - Re: "what do you think it means that Intel is farming out the design work for the 4Mb test chip? If OUM was really important to them wouldn't they be doing it in-house?" Offloading the OUM design does two things - 1. It preserves Intel's design resources for current projects with more immediate importance. 2. It allows Intel to assess the design capability - and effectiveness - of Azalea Microelectronics. If the program proves successful, Intel can always purchase Azalea Microelectronics and their design team - at hat point, experienced in OUM capability. If it doesn't work out, Intel is out the money they contracted to Azalea Microelectronics - and they write off the R & D expense. Paul

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