Intel Corp (INTC)

[Elmer Phud]

Alan -

I also find this a bit baffling. The only thought I had was that the 875 is on a more advanced litho than the 865. I would assume 865 is on 0.18u and the 875 on 0.13u. This would result in a premium due to the limited 0.13u capacity.
Does this seem reasonable?

Reasonable to you and me maybe but reasonable to Intel? My guess is that they prefer to not do 2 designs. As for limited .13u capacity, it's hard for me to look at 5 monster fabs, 2 of them 300mm and think of capacity problems<G>. Also with the Willamette die winding down more .18u capacity is freeing up. That's what the chipsets do best, use freed up capacity.