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To: Zeev Hed who wrote (19548)	3/12/2001 4:45:54 AM
From: Craig Freeman	Respond to of 60323

Zeev, "there is simply now (sic) way they are going to spend all that capex ..." According to my sources, the world production of "Capex" is 76.5 million pounds. Assuming a 100% Italian import of this divided pork product and thin slicing, this amount of "Capex" would be sufficient to create some 300M sandwiches. At $4 per sandwich, the retail value of world-wide Capex consumption approximates $1.2B. Assuming, as you stated, that the availability of Capex is now limited, many Intel employees may have to seek out new sources for luncheon meat and other protein sources. Meanwhile, despite laying off some 5,000 people, Intel is still on-track to spend ~$7B in capital expenditures during the next fiscal year. Craig re: "I would have preferred it if INTC announced here and now that they are cutting .75 to $1 B of their capex, ..."

To: Zeev Hed who wrote (19548)	3/12/2001 7:37:20 AM
From: Road Walker	Read Replies (1) \| Respond to of 60323

Zeev, OT- Intel capex Intel capex can be viewed as cost savings investments. The move to 300 MM wafers alone should produce saving of about 30% on the cost side. The move to .13 will allow more die per wafer, cheaper and faster microprocessors. The current P4 is big and expensive to produce, they have no choice but to make these investments. In 1999 and early 2000, when there was a shortage of Intel parts, Intel was roundly criticized for not spending on capex during the 1998 slowdown. Assuming this is a cyclical slowdown and not a permanent change in demand, Intel will benefit from investments made (painfully) in 2001. John