Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Elmer who wrote (85304)	1/5/2000 9:52:00 PM
From: Process Boy	Read Replies (2) \| Respond to of 1573092

EP - <Intel is bursting at the seams and nobody seems to notice.> Well said. .25 is a mature and stable process that entails roughly 90% of Intel's rather formidable capacity right now. .25 yields aren't tanking. Semiconductor manufacturing capacity concerns can be diabolical with its long lead times to bringing new capacity online and huge capital outlays. Too much capacity and its a huge cash drain. Not enough and we see stuff like todays announcement. I've been through both swings of the cycle several times. Observing the effects of either side of the sweet spot can admittedly be very frustrating, mainly due to the recovery time needed to correct the situation. And the risk is that in the interim the market will swing the other way. I know managers stew and fret trying to read the prevailing winds several years out when planning for future production capacity. It's not an easy game, and the consequences of being caught too short or too long can surely be painful. I'm am not trying to make excuses due to today's announcement of note, and I certainly don't know all the details of what is going on currently. I'm just trying to make an observation. PB

To: Elmer who wrote (85304)	1/5/2000 10:29:00 PM
From: Cirruslvr	Read Replies (2) \| Respond to of 1573092

Elmer - RE: "Intel is bursting at the seams and nobody seems to notice." Maybe Intel had begun to ramp down production of .25 processors to get ready for Cumine's Sept release, but since Cumine was screwed, the things that make processors was idle for some time, until Cumine was finally ready to go. Since Intel couldn't just restart the .25 process and Cumine was delayed Intel must have had a period of non-productivity which may describe the lack of Cumines when it was announced and the supposed lack of enough .25 processors.