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To: dale_laroy who wrote (37988)	5/1/2001 5:00:25 PM
From: fyodor_	Respond to of 275872

Dale: You are looking at the wrong place. Q: "Jerry, some of your competitors have started to use foundries in Taiwan as a strategy for perhaps lever'ing off their capital requirements is that something that's in your future? Not necessarily Taiwan, but somewhere else?" A: "Absolutely. What we wanna do is have the lowest cost solutions and to the extent that we can find foundries that... you know... have the competitive process technology that we need, we'd consider it. Under our arrangements with Intel we are not permitted to produce more than 20% of our output... this is one of the other ways they keep us under their heel... but it turns out that with our small die sizes and our mega fabs we've been able to... in spite of that... drive market share... but under our current agreement we can only produce 20% of our units in foundries. Currently we produce none. So we have large upside there and I expect that over the next years, we'll take some advantage of that... as, particularly, the Taiwaneese companies demonstrate technology close to the leading edge. It does us no good to produce devices on trailing edge technology, because then we wouldn't have a competitive solution." Dale, you have a point. I'm still not so sure they'll do it, but at least it looks like they are keeping their options open. -fyo