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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Tony Viola who wrote (91294)	10/29/1999 12:36:00 PM
From: Dan3	Read Replies (4) \| Respond to of 186894

Re: How would you like to be AMD right now? Delighted to be holding AMD right now. With the move to .18, AMD's 2 FABs are capable of making enough CPU die to equal the entire world market for CPUs. (2 FABS x 5,000 wafers/week x 52 weeks x 300 die/wafer = 156 million die per year. If yields are 50%, that's still 78 million CPUs. VIA will be cranking out low end chips, certainly 10s of millions. With Intel and AMD roughly equal in performance, this does not bode well for Intel market share or profitability. Don't forget that Intel's non X86-architecture business lost money last year. If significant market share moves to AMD at the high end and VIA at the low end, Intel also loses chipset and motherboard sales. Even with it's other markets for foundry capacity (networking equipment, etc.), Intel will most likely be paying for far more foundry capacity than it needs next year when it has less income from fewer sales to pay for them. AMD's 2 .18 FABs and 2 smaller FABs are just the right number for this business. Intel's 4 .18 FABS and about 10 smaller ones are far too many. Dan