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Technology Stocks : Intel Corporation (INTC)

INTC 37.04

-6.2%

Nov 4 3:59 PM EST

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To: VICTORIA GATE, MD who wrote (82561)	6/3/1999 1:53:00 PM
From: Paul Engel	Read Replies (1) of 186894

Victoria - Re: "What the heck is behind it? Taiwan Semiconductor Chairman Expects Intel Orders, EDN Reports " Intel has used wafer foundry services quite often in the past, primarily to manufacture CPU chip sets, thereby reducing strains on Internal manufacturing capacity. In addition, TSMC holds some technology capabilities such as SSTI's Split Gate FLASH EPROM technology that Intel does not possess - but has a cross-license for. Thus, Intel could make use of TSMC's technology and manufacturing capacity without increasing its own capital expenditures for internal expansion. TSMC has excellent process capability - with 0.18 micron processes coming on stream and their yields and quality control are first rate. They offer a wide variety of processes including standard logic, EEPROM, Flash Eprom and DRAM as well as MIXED SIGNAL and embedded DRAM process capability. TSMC has multiple fabs in Taiwan and one in CAMUS, Washington. Thus, TSMC could provide a technology base for Intel's internal devices or Level One's Mixed SIgnal requirements or Intel's Chips & Technology graphics chips requirements with EMBEDDED DRAM. Paul

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