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Technology Stocks : Intel Corporation (INTC)

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Nov 25 3:59 PM EST

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To: Jim McMannis who wrote (63758)	9/1/1998 9:53:00 PM
From: Paul Engel	Read Replies (2) of 186894

McMannis - Re: "How much more does a Pentium II cost to make than a Celeron A? Your best guess please." The straight silicon costs would have the Pentium II cheaper than a Mendocino by less than $10. However, the added cost of external 512 KByte L2 cache chips and assembly - required for the Pentium II - is probably around $15 +/- $5. The net result is the Pentium II is more expensive by $5 or $10 to manufacture - as a first order guess. I am not factoring in such issues as assembly/test yield which would tend to drive the Pentium II cost up a bit more. Paul

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