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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: MONACO who wrote (47075)	2/3/1998 5:58:00 PM
From: Paul Engel	Read Replies (2) \| Respond to of 186894

Monaco - Re: "I thought Intel got the Alpha Chip in the DEC deal..." Intel got the manufacturing rights ONLY - and probably access to any process technology that comes with the DEC Alpha. The design (i.e., the OWNERSHIP of the DESIGN) and architectures and Design Engineers remain the property of DEC. BUT...THIS Deal Is NOT DONE. It has yet to be approved by the appropriate U.S. Governmental agencies - either the DOJ, FTC or both. Until that happens, Intel and DEC are where they were BEFORE the settlement - EXCEPT that the patent infringement suit is ON HOLD. If and when Intel begins the manufacturing of the DEC Alpha, they will sell the wafers to DEC (I assume DEC will buy full wafers as opposed to sorted/yielded wafers) at some cost negotiated by Intel and DEC. These costs generally involve the fixed and overhead cost associated with producing the wafers and incentives (positive and negative) regarding the ultimate yield of the wafers. I believe there is also a clause that will permit DEC to design their Alpha using Intel's standard 0.25 micron CMOS process once Intel implements that process in the (to be acquired) DEC Fab 6. Anyway you look at it, Intel has already WON. The law suit is at worst on hold and realistically any court would be able to see DEC's ulterior motives were not to pursue damages from Intel under some bogus claim of fraudulent patent infringement, but to get out from under a tremendous financial burden of supporting their Alpha Chip under a losing scenario. Paul