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To: Steven Angelil who wrote (6817)	10/27/1997 3:21:00 PM
From: BillyG	Respond to of 25960

INTC to install .25 micron equipment in DEC fab............ Sorry if this was posted already....... techweb.cmp.com A service of Semiconductor Business News, CMP Media Inc. Story posted at 11:45 a.m. EDT/8:45 a.m. PDT, 10/27/97 Intel plans to upgrade DEC fab By Jack Robertson NEW YORK--Intel Corp. plans to move quickly to install new 0.25-micron process equipment in Digital Equipment Corp.'s chip plant after it acquires the Hudson, Mass., fab as part of a broad-based agreement between the two companies (see today's story on agreement). "Once we get government approval of the agreement, Intel will re-equip the Hudson fab with quarter-micron tool sets," said Craig Barrett, president and CEO of Intel. Barrett didn't specify the equipment suppliers, but industry sources expected initially that would include the quarter-micron Micrascan step-and-scan lithography systems from Silicon Valley Group Lithography. Intel uses these systems in its other fabs. Barrett said the DEC fab equipment set "is substantially different from Intel fab tool sets. We would want to make a healthy installation of new equipment at the fab, especially to get 0.25-micron process capability." The Intel CEO said he hoped to get government clearance of the deal within three to six months. Intel will take no steps to implement any of the agreement until the deal is cleared by the federal government. Barrett said Intel would use the DEC fab to build some of its own product line -- most likely peripheral chip sets for networking products, bus line controllers or embedded processors. "Intel has a broad line of products that potentially could be produced in the new fab," he said. "We will make a decision after we acquire the facility on specific Intel products that could be processed there in addition to acting as the foundry for the Digital Alpha chip." Sources said the Digital fab is now only about 50% utilized. The chance to pick up extra capacity quickly without a heavy capital investment is a key benefit for Intel, they said. Barrett said the opportunity to acquire the DEC fab played a factor in switching its upcoming Israeli fab from flash to microprocessors and delaying both it and an MPU plant planned in Fort Worth, Tex., by one year (see Oct. 24 story).