Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 36.20

+0.1%

Dec 26 9:30 AM EST

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To: Joseph Pareti who wrote (172519)	1/16/2003 5:27:29 PM
From: Jack Hartmann	Read Replies (2) of 186894

Hi Joseph, I think he meant that capex for non-300mm fab would be slashed. It looks like Intel is going to push capex to 90% 300mm fab and that older chip equipment (200mm) would be seeing some eventual phase out. I think the 300mm cost efficiencies are not so much the issue as so much the demand for the high end chipsets. What was missing out of the record motherboard shipments was highend vs. lowend breakdown. The rise in the ASP was due to sales in the pricier chips for laptops and server computers compared to desktops. I think the 300mm fab will not operate near capacity in 2003 so no need to ramp up any more capex than what was given in the CC. Meanwhile 200mm fab that is established will require less expenditure to maintain. Present capacity for the 200mm products is sufficent to meet present demand. The street seemed disappointed in the lack of visibility, ("The question is when does the market return"), prospects of another sluggish year, and that INTC capex was not at least equal to the 4.7B seen in 2002. I did see some global trends that were evident. - China is ramping up and will be a strong competitor to Japan, Korea, and Taiwan. Intel has a Shanghai plant that will make the Pentium 4. There must be some cost savings there due to demand is going to be high. - The Asian economy seems to favor generic computers cheap as possible. This favors seems to favor Samsung vs. Intel in Asia yet INTC remarks Asia was very strong for them. Jack

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