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

To: Tony Viola who wrote (155383)	1/15/2002 8:58:51 AM
From: Dan3	Read Replies (3) \| Respond to of 186894

Re: Downbin some if you have to to get 1.6 GHz chips for eMachines and the like If Intel could ship 2GHZ to 2.6GHZ, they could put a lot more pressure on AMD than they will if they are shipping 1600MHZ to 2200MHZ. Athlon XP is presently shipping as 1600 through 2000. amd.com^609,00.html Given how much money Intel has poured into its FABs over the past two years, they should be able to produce enough parts by now, especially for Q1 levels of demand, but evidently that isn't the case. They've been ramping .13 shipments for 2 quarters now, so they should have significant volume by now, but probably still need some .18 parts. That they would be using scarce .13 capacity to produce 1600mhz parts at this point is... strange. Perhaps buyers are rejecting the high price differential being charged - $566 for 2.2GHZ does seem a bit silly when $195 will get you 1.8GHZ. The pace at which processor speeds have been increasing could have educated buyers that $350 worth of their purchase will be gone in as little as 2-3 months if they buy the most expensive chips. It still doesn't explain why Intel wouldn't just move their speeds to 2GHZ-2.6GHZ if Northwood really did scale as some here seem to think. Most likely, I think, is that Intel is still far short of its goal of moving to .13, and that most capacity is still .18. Until they have most capacity at .13, they have to stay in a lower speed range because that's all they have high capacity for. Which means Intel will have to continue a very high rate of capital expense for the near and mid future. AMD's .13 parts start appearing this quarter - it will be interesting to see how well they can do. AMD has stated they expect to go from being behind in process right now (.13 copper Intel vs. .18 copper AMD) to ahead in process (.13 copper vs. .13 SOI/copper) by the end of the year. Intel has said it won't make it to SOI until the .9 or .65 node.