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To: Mary Cluney who wrote (156204)	1/18/2002 4:14:29 PM
From: Tony Viola	Respond to of 186894

According to Pete Gerassi, chip costs are about 2% of server costs. On that basis, with McKinley chips costing around $2500, $500,000,000.00 in server sales would require about 4,000 chips. Does that mean Intel would have to allocate 1 day of production at some Fab for Mckinley manufacture? Yeah, I would say they mean $500,000,000.00 in chip sales. Mary, big mistake coming to conclusions based on what that guy says.

To: Mary Cluney who wrote (156204)	1/18/2002 4:18:45 PM
From: Tenchusatsu	Respond to of 186894

Mary, the article was talking about 2002. It was predicting $500M for all of this year, even though McKinley will only start to ramp up in the middle of the year. The 4-way McKinley commodity servers ("commodity" relative to the high-end RISC machines) will dominate 2002, while the higher end servers won't come until the final quarter, maybe even later. If the report was talking about chip sales, I'd say it's a little optimistic, but if the report was talking about server sales, I'd say it's a little pessimistic. Tenchusatsu