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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Robert Douglas who wrote (9260)	1/16/2001 10:29:25 PM
From: Ian@SI	Read Replies (2) \| Respond to of 10921

I believe that INTC is sitting on about $14B "in the bank". Yes they're better able to spend $7.5B than most chipmakers. But spending money has been the name of the game for chipmakers for the past 30 years or so. The other choice is to go out of business. And that's a choice that many of them make with each cycle. Nevertheless, the remaining leading edge competitors spend more money on more expensive fabs with more capacity. "Evolve or die!" A 3-word Precis of Darwin and the story of a chipmaker.

To: Robert Douglas who wrote (9260)	1/17/2001 12:07:34 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 10921

Robert, it is even better than that, INTC has close to $14 B in cash and short trm investments (not counting their "portofolio of invenstments in some 550 companies, worth about $3.5 B), but they will have $4 B in depreciation charges next year, enough to pay for more than half that cap-ex. I doubt many other companies are that "flush" with cash and derpeciation charges. That figure of $7.5 B, even if spent copmletely on new Capex (and none on "bought in capex), is still under 20% of the expected revenues INTC is going to generate next year, in the first half of this year, I am not sure many other companies will be able to go that far. But, that makes the end of this decline so much closer. Zeev