Compaq Message Board - Msg: 9585321

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Technology Stocks : Compaq

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To: rupert1 who wrote (61523)	5/18/1999 11:09:00 AM
From: rudedog	of 97611

Magee drops the ball again - described microprocessor manufacturing as "a bloody business" The Salem facility has NOTHING to do with microprocessor manufacturing - that was done at the Hudson facility that DEC sold to Intel before the merger. The Salem facility was an assembly plant similar to the Houston and Freemont facilities. This looks to me like a straight capacity analysis - if you have 3 facilities operating at less than 65%, then combining to 2 facilities takes utilization up to close to capacity, which is more efficient, and cuts fixed costs by a third. Also no one said that 900 jobs would be eliminated - there are a number of CPQ facilities in the northeast in addition to new job openings at Houston and Freemont.

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