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Technology Stocks : Intel Corporation (INTC)

INTC 35.10

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Nov 19 3:59 PM EST

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To: David S. who wrote (47592)	2/10/1998 7:14:00 PM
From: Paul Engel	Read Replies (1) of 186894

David - Re: "...Do you have any idea of the cost of the new chip (440BX).." This is classic Intel. The 440BX is manufactured on the 0.35 micron CMOS process that has been used by Intel for nearly 3 years on the Pentium and Pentium MMX. Accordingly, this process is running at extremely low defect densities. The 440BX thus benefits from all this past experience. The initial silicon costs are, according to my estimates, below $10 per chip (it is a single chip - but requires a "southbridge" PIIx6 chip). Adding up packaging costs and test costs, it should not cost Intel more than $15 to manufacture. As the 0.35 micron fabs are depreciated, the cost may come down. The chances for yield improvement are not real good - and I do not mean that in the AMD sense. I mean the yields are so high already they can only be improved incrementally as the 0.35 micron process slowly inches up to >90% yields. Over time, the 440BX and the i740 should migrate to the 0.25 micron process. Paul

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