Intel Corp (INTC)

[jhalada]

Alan,

I think the purchased output from Intel and STM factories get replaced by the 300mm factories when they are brought on-line. 200mm factories are at 65nm and moving to 45nm.

I think that is the plan, but it seems one of the 300mm fabs is for NAND, and the other is empty, and they mentioned there was no plan to equip it in 2007. So the NewCo will need to raise some money near the end of 2007 / beginning of 2008, probably from IPO.

Spansion is a bit behind in nodes (65nm production is only about to start now, but on 300mm) but will likely be at parity node parity at 45nm, with Spansion having 300mm and Mirrorbit trump cards.

I am not very optimistic about this new entity. There was a rumor that the deal would include cash to equip M6, which would have made it more formidable, but the deal does not include that. Intel and STM chose to take the cash instead.

Good for Intel, STM (and Spansion) bad for NewCo.

Joe