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To: StanX Long who wrote (64075)5/29/2002 1:53:05 AM
From: StanX Long  Read Replies (1) | Respond to of 70976
 
Intel cuts MPU prices thanks to yields from 300-mm wafers, 0.13-micron process
Semiconductor Business News
(05/28/02 17:32 p.m. EST)

siliconstrategies.com

SANTA CLARA, Calif. -- Intel Corp. has cut the prices of 21 microprocessor products by a range of 9-to-53% as the company's massive investments in 300-mm wafer fabs and 0.13-micron processes helped to drive down production costs, according to a spokesman here today.

Intel has set its capital spending plans for 2002 at $5.5 billion following a record $7.3 billion in 2001 (see Jan. 15 story). Much of Intel's spending has been earmarked for 300-mm wafer frontend lines and its migration to 0.13-micron (130-nm) processes.

"These reductions are part of a routine process of lowering prices that's part of our normal business plan. Typically, you don't see price cuts of 50% or greater, but it has happened in the past," said the Intel spokesman. He attributed the new round of price cuts to Intel's aggressive spending on 300-mm fabs and the ramp of its 0.13-micron process.

"The investments have resulted in robust production yields that have opened up the opportunity to reduce prices on a range of processors," he told SBN.