Intel Corp (INTC)

[Windsock]

Intel spent a lot of money to renovate the old DEC fab and could have built a new fab from the ground up for less. The purchase of the DEC fab was a bad deal that was needed to settle the DEC patent law suit with Intel.

DEC needed to dump the Hudson fab so that it could could start a second round of talks with Compaq and get acquired. The first round of talks ended when Compaq told DEC that it had to dump the semiconductor manufacturing before Compaq would acquire DEC.

It is probable that the principle reason that DEC filed the patent suit against Intel was to force a settlement that would transfer the Hudson fab to Intel.