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

To: Hightechhooper who wrote (123983)	1/2/2001 11:23:57 AM
From: Elmer	Read Replies (2) \| Respond to of 186894

Re: "I think the INTC plan is to take advantage of demand weakness to accelerate the move to P4. For example, lets assume that INTC has capacity to make 30 million P3 size MPU's per quarter (or about 15 million P4's at .18). Up until now the demand was actually higher than that so moving quickly to P4 could not happen until more capacity was brought online" The idea that Intel can produce half as many P4s as P3s may be a bit optimistic. Using very rough rules of thumb, when the die size changes, the yield changes inversely to the square of the area change. Meaning that by doubling the die size the yield would be closer to 1/4 the functional die, not 1/2. Very very rough but probably gives a better estimate here. Re: "Given the high proportion of fixed costs in the fab I think INTC will choose to utilize the excess capacity because it comes at very little marginal cost. This will help to accelerate the transition with no P&L implications at .18 (maybe even a benefit, depending on how INTC would have to price P4 to move that many units)" Could be but P4 systems today are RamBus based and that may limit P4's acceptance more than availability. EP