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

To: John F. Dowd who wrote (108059)	8/23/2000 8:14:23 AM
From: Road Walker	Read Replies (1) \| Respond to of 186894

John, Yes the article implies that the shortage is due to demand. It also implies that Intel is constrained across it's product line, so it can't switch production from some other product to Xeon. A quote: "William McLean, president of IC Insights, said the shortages result from a rise in server demand and poor forecasting by Intel and its customers. 'Intel is struggling with what to produce and when,' he said". John

To: John F. Dowd who wrote (108059)	8/23/2000 8:36:06 AM
From: Dan3	Read Replies (3) \| Respond to of 186894

Re: We know it is a demand problem as INTC has been cranking out Xeon cpus for some time now. Hard to believe that they can't continue to make them at the same yields as before. Don't be so sure, Intel is presently shooting for faster speeds from the Xeons instead of the previous 500MHZ or so. Remember what happened when AMD used slightly more aggressive feature sizes to target its large cache K6's at 500MHZ instead of 400MHZ? Yields collapsed. The same thing could have happened here. Xeons faster than 700MHZ (I mean real Xeons, not relabled P3s) were cancelled at the last minute recently. That could have been due to all the 700 plus wafer starts resulting in failure. If there had been a 50/50 mix of old mask / new mask starts, Intel would find its total product available for sale reduced, and no product available above 700MHZ - which is where we seem to be right now. Dan