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To: pokysconductor who wrote (7481)	2/6/2000 11:56:00 PM
From: ptrader	Respond to of 8193

Their are two sides to the capacity issue. First, if a division decides to find more capacity, it ports a design to a new fab or process. The cost here is engineering design cost and mask cost at the new fab. But, another hidden cost is opportunity since the engineers could be working on new products. Second, some divisions will not port because it is too difficult or no time left in the product. Here the revenue is lost. I will say that this capacity issue will last 1 or 2 quarters max. By then all products will be in 0.25m. I do not know of any capacity issues in these fabs. Also, 0.18m process products will be sampled this year. This yields more chips/wafer.