Intel Corp (INTC)

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" Intel's will not have large over-capacity, considering it has six high volume production fabs (three 65nm, three 45nm), plus the development fab."

Don't forget - Intel has completed their 32 nM process development - in their development lab, of course - and they will need to bring up a production fab on this new 32 nM process.

Converting an existing 65 nM fab, or one of the 45 nM fabs, will absorb a good deal of this "extra" capacity.

Ideally, by the end of this year, Intel could have a 32 nM FAB qualified for production and in the midst of a full production ramp.

When this recession is over, Intel will need that 32 nM FAB.

In addition, Intel has signalled their intention to move their new chip sets to the newest wafer fab processes, making 45 nM and 32 nM fabs even more loaded. Add in (HOPEFULLY) the new Larrabee graphics processor, and they could easily use all their capacity once the economy recovers.

IF THE ECONOMY DOESN'T RECOVER, THEN ALL BETS ARE OFF.