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To: Rink who wrote (138248)	10/30/2004 12:59:27 PM
From: Elmer Phud	Read Replies (1) \| Respond to of 275872

ixse What do you think "As part of an agreement with the Irish Development Authority (IDA)" means? You think Intel is uncapable of excepting Irish pounds ?? If it's clearly stated that $2B is Intel's input in the new fab you really want to maintain the total cost is only $2B? I don't know an exact number for the cost although I'm quite sure it was below the $4-5 Billion claimed. I simply pointed out that Intel said the cost was $2 Billion for each of those 3 Fabs and I can't find a statement by Intel claiming a higher amount. If you can provide a reference to a statement by Intel to substantiate $4+ Billion I'd like to see it. Perhaps Ireland did offer some incentives. Israel has in the past and has already authorized a large sum ($400-500 million I think) to try to lure Intel into building a 3rd Israeli Fab. I doubt that New Mexico subsidizes Intel's operations although they may back Bonds and offer tax incentives. It may be called an expansion but it is an entirely new building with a connection to the previously existing one. Call it what you want but it's a full stand alone fab. Intel listed the cost there as $2 Billion. With the exception of California which chooses to punish, it seems everyone is offering incentives these days to attract high tech operations and their high salaries. What would a large modern Fab cost in a new undeveloped area where infrastructure isn't already in place? Probably $3 Billion+. That's why you're seeing "expansions" and 200-300mm "conversions" instead. Intel has perhaps 5-6 other 200mm Fabs that could possibly be converted at a lower cost than building a new one. That's why capitol expense projections are lower looking forwards. It's cheaper to convert than to build new Fabs. Assuming AMD's Fab36 is a success and there is potential demand, do you think AMD would convert F30 to 300mm or build a new Fab?