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To: Jeff Fox who wrote (37546)	10/24/1997 5:50:00 PM
From: K. Bloomquist	Respond to of 186894

Great Point. Rueters screwed up the news. INTC is merely addressing the flash memory problem led to gross margin being lower by two points 9-30-97Q.

To: Jeff Fox who wrote (37546)	10/24/1997 5:53:00 PM
From: Tony Viola	Read Replies (1) \| Respond to of 186894

Jeff, RE: "The only loser here is the flash memory business. Intel flash is out a whole fab! Painful for those in this division, but perhaps good for Intel if the cost are too high to make money at projected market prices. In summary, microprocessors get more capacity sooner with this change." Like the guy named Eddie the echo in the McDonalds' commercial says "sounds good, sounds good".* However, you are in opposition here to an opinion Paul Engel gave previously. Some guidance from Intel may be in order. * Except for the folks in flash Tony

To: Jeff Fox who wrote (37546)	10/24/1997 5:55:00 PM
From: Larry Loeb	Read Replies (1) \| Respond to of 186894

Jeff, As I understand the release, Fab 18 will be now for both flash and logic. Since it was originally just flash, the flash business lost 1/2 a fab. What's interesting is logic picked up half a fab. Do you know when in 1999 the Haifa plant was scheduled to come on line? Has that changed now? The timeline has changed for increased production capacity. Since the Fort Worth plant was scheduled for Q3 1999 and is now moved to late 2000, logic capacity may be less in 1999 than otherwise (as will flash capacity), but there will be more logic capacity than projected from 2001 on. Any comments? Larry

To: Jeff Fox who wrote (37546)	10/24/1997 6:09:00 PM
From: StockMan	Respond to of 186894

Jeff, Re -- The only loser here is the flash memory business. The slowdown in flash demand implies a slowdown in wireless phones, pagers, digital cameras, handheld devices etc.. My guess is that MOT, LU, Nortel, Nokia, Ericsson, Kodak and a lot of Japanese and S Korean companies will be impacted. Also some of the chip companies such as NSM, AMD, VLSI, LSI which make chips for these devices will be impacted. Lets hope that the impact is minimal. Stockman

To: Jeff Fox who wrote (37546)	10/24/1997 8:00:00 PM
From: Elmer	Read Replies (1) \| Respond to of 186894

Jim: <So the real news; first and formost is the fact that Intel will build out the Israeli fab 18 for microprocessors. This actually accelerates new capacity for processors over the original plan. There have been rumours that this change was being considered, but this is the first official confirmation of this switch.> I remember an Intel spokesman saying in a analysts meeting several months ago that the Israeli Fab could be converted to logic instead of flash and the decision didn't have to be made until sometime down the road. Looks like later finally came. Intel did discuss it publicly. EP