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Technology Stocks : Intel Corporation (INTC)

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1:51 PM EST

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To: Aaron Cooperband who wrote (46289)	1/23/1998 8:49:00 PM
From: Paul Engel	Read Replies (3) of 186894

Aaron - Re: " the "delayed" fab 16 was actually reassigned to other products, so it might not be available to handle this problem." Intel messed up big time in describing why they delayed Fab 16. Basically, they realloctaed the capital equipment "budget" for Fab 16 to the Israel Fab 18 - so that microprocessors could be made in Fab 18 in addition to or instead of Flash memory. Fab 16 remains mothballed at this point - so it represents addiional capacity two years after Intel decides to turn it back on. It could be used for microprocessors or flash or whatever at that time. Currently, Intel is trying to ramp up CPU capacity in "hopes" that the market will exist for these new chips - and building new fabs in this environment with the S.E. Asia currency crisis, White House Investigation Intrigues, sub $1000 PC craze - it's a real crap shoot. And each roll of the dice costs about 2 billion dollars. Paul

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