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

To: Paul Engel who wrote (126535)	2/3/2001 7:17:10 PM
From: Dan3	Read Replies (2) \| Respond to of 186894

Re: So--- you backhanded ADMIT that there will be NO DEPRECIATION on Intel's new fabs I never said anything about depreciation on Intel's new FABs. Intel has no problem depreciating its new FABS - they will (if all goes well...) be producing high margin products. Intel's problem is that they are having to build those new FABs years earlier than they planned to because AMD's unexpected competition has rendered most of Intel's current capacity obsolete. AMD has two large FABs, the .18 FAB 25 and the .13/.10 FAB 30. AMD can supply about a third of the world's requirements for CPUs from those two FABs. Intel has 5 or 6 FABs producing .18 parts, and must replace 3 of them this year and next. AMD doesn't need to build a new FAB yet since Dresden FAB was designed to support .13 and .10. But Intel must build new FABs from the ground up to support these new feature sizes. So Intel is left with 3 nearly new, multibillion dollar FABs that must be depreciated while producing far less profitable parts than expected (unless they are just shut down). Intel is currently planning to start Fab 22 in Chandler slightly ahead of the new Irish fab. Intel is also planning to spend $2 billion to set up a new fab near its existing chip-processing plant in New Mexico during 2002 (see May 24 story). These three new fabs will be the first production sites for next-generation Intel microprocessors, including the Willamette, Foster, and McKinley series. The three facilities will also make a full range of Intel MPUs, according to Mike Splinter, Intel's senior vice president and general manager of technology manufacturing. siliconstrategies.com Dan