Intel Corp (INTC)

[mas]

It is the reason Intel added one fab from its plan of three 45nm fabs last year to four.

You really have no evidence for this and one of these Fabs is D1 which is their development Fab which will go to 32nm first in time. They could be just building capacity for their most optimistic marketshare plans. Another explanation could be they are building over capacity to ensure maximum price pressure can be exerted on AMD which is certainly more believable in light of 65nm experience and their own words of excess capacity and empty Fabs for someone. The very fact we will see Penryn in 2007 at greater than 65nm speeds does not strike one as being indicative of a bad process .