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Technology Stocks : Compaq
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To: Wally Mastroly who wrote (26240)5/15/1998 9:24:00 PM
From: Night Writer   of 97611
 
Wally,
Wonder if Kurlak gave any thought to expense reduction. For example, more and faster chips per silcon waffle equal need for fewer fabs and less labor. I think engineers can understand this formula. Kurlak seems to be zeroed in on the same number of fabs being retained for production. Intel has already slowed opening new fabs. I believe one in Texas has had work on it stopped at this time. They might also close some older operations. I have heard nothing on closings at this point. In other words Kurlak's basic thesis may be flawed if he has given expense reduction no consideration. I'm betting the engineers and business people at Intel aren't as simple as his reasoning.
NW
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