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Technology Stocks : Intel Corporation (INTC)
INTC 37.81-4.3%Dec 12 9:30 AM EST
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To: etchmeister who wrote (180791)4/16/2005 3:24:06 PM
From: Elmer Phud  Read Replies (1) of 186894
 
etchmeister

Intel has been the largest producer of chipsets for many years, mainly because foundries were unreliable and had serious quality problems which limited Intel's ability to ship uProcessors. Intel's chipsets use all but the most modern process, in this case 90nm. Chipsets are produced on 130nm and 180nm as well as there being some legacy products still manufactured on older processes. Intel's business model is to use the leading edge process for uProcessors, then once a new process generation comes along the uProcessors roll off onto the newer process and chipsets and other non-uProcessors move in to use the freed up capacity. It's worked very well for them, however it's impossible to be perfect in the capacity planning and shortages can and do occur. Particularly if there should be an unexpected upswing in demand for a product line that uses (in this case) the 130nm technology. Intel may have more to say about this on Tuesday.
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