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

To: Charles R who wrote (81621)	5/26/1999 1:47:00 AM
From: Tenchusatsu	Read Replies (2) \| Respond to of 186894

<If Intel were smart, they will start slowing down fab construction> One way that Intel is going to keep those fabs busy is by integrating as much as possible onto the processor die. Also, you might find other Intel products like chipsets filling up fab capacity. I'm very sure Intel would know how to predict market demand and adjust their construction and capital purchases accordingly. Contrast this with AMD who is charging blindly into the construction of a big superfab and who can't back down now even if the market takes a drastic turn. (Kind of like Clinton's splendid little war in Kosovo, no?) Tenchusatsu

To: Charles R who wrote (81621)	5/26/1999 2:08:00 AM
From: Gary Ng	Read Replies (1) \| Respond to of 186894

Charles, Re: If Intel does not slow down then they will have to acquire a lot of fabless companies or get into low margin foundry business to fill the fabs They are doing it now. First is the SRAM business. I believe all future Intel CPUs(other than StrongARM) will have L2 cache on chip which can use up quite some chip space. Then there is i810 which also should use up quite some capacity. I believe more will be done in this direction like network, wireless network etc. Gary

To: Charles R who wrote (81621)	5/26/1999 3:20:00 AM
From: Process Boy	Read Replies (1) \| Respond to of 186894

Charles - <If Intel were smart, they will start slowing down fab construction - even if K7 does not live upto expectations, AMD is going to take their 40% market share - if need be at $50 ASPs.> 1) AMD only has capacity best case to achieve ~30% market share, unless you are assuming a market contraction of some sort. 2) Please be more specific as to how Intel should slow down fab construction, i.e., what fabs? I am extremely curious what kind of data you have that you can make such a suggestion. PB