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To: Dr. David Gleitman who wrote (25835)5/8/1998 3:10:00 AM
From: Bruno Cipolla  Respond to of 97611
 
financial impact of dec-intel from various sources, (WSJ, dec info etc.)

*annual* revenues from royalties: 60-70M$ (paid to dec)

DEC's yearly *Savings* obtained by giving Intel the responsibility
of manufacturing Alpha (and Digital Semi) are:

100M$ saved per annum (loss for Digital Semiconductor)
150-250M$ saved yearly for Plant upgrades (new technologies)
100m$/annum saved for the 2000 people transitioned to intc
80-100M$/annum as pentia discounts (this may be absorbed by cpq discounts)

that translates into a total of 500-550M$ per year of money
saved or earned by dec for each of the next 5-10 years.

not including the one time payment of 700M$ for the Hudson fab.

bc