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

To: Elmer who wrote (103824)	6/1/2000 12:22:00 PM
From: GVTucker	Read Replies (1) \| Respond to of 186894

RE: capacity This reminds me of the late 80's, when everybody and their mother thought that PC demand was scaling back permanently. Intel management went contrary to this popular wisdom, and expanded capacity far in excess of what any outside analyst thought was reasonable. I still believe that this is the primary reasons for Intel's current dominance (next to the decision to drop DRAMs). The current stance seems to be in sharp contrast to that stance. I don't know whether to think that Intel mgmt has grown hesitant or if they are rationally not overshooting.

To: Elmer who wrote (103824)	6/1/2000 12:54:00 PM
From: Tony Viola	Read Replies (1) \| Respond to of 186894

Elmer, >Re: "Demand is huge according to Intel per the shareholder's meeting. Not sure why that isn't apparent in the market research material, or why there seems to be a disconnect between Intel execs and the market research firms?" (Amy) "I still question if Intel is putting enough new capacity in place" (Elmer) It sounds like you think demand is huge, or very high if you don't like extreme words? I picked up the huge word at the stockholders meeting (Craig said it), but I couldn't find any notes on the question that prompted it, or his words that were around it. Tony

To: Elmer who wrote (103824)	6/1/2000 1:24:00 PM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Elmer, Demand is "huge" now, with projections running to 30%+, I believe, for total semi sales increases this year. Will there be a 30% increase on those numbers next year? Will Internet appliances and handhelds eat into sales of desktop/notebook microprocessors? Is the cyclical nature of the industry still intact? The question is where will demand be in early 2001, when the capacity you begin to build today is coming on line. I wonder how much visibility Intel has for forward demand in this rapidly changing environment. Idle fabs can really eat into earnings. The financial penalties for over or undershooting demand are equally bad. Also, I believe Intel has said they are considering outsourcing some non-PC/Server products, probably from the comm group. And the completed change to .18 and eventually .13 (?), in addition to larger wafers, should increase production from existing facilities (right?). I wouldn't want to be the person making those projections and spending those $Billions. I don't feel comfortable second guessing them. John