Intel Corporation Message Board

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  • semi_equip_junkie semi_equip_junkie • Jan 18, 2013 11:33 AM Flag

    Intel's CEO Discusses Q4 2012 Results - Earnings Call Transcript

    They are specifically spending an additional $4B with ASML

    There is NOTHING one can do to cure stupidity - you red the Q&A?

    We purchased $11 billion in capital assets, primarily building and equipping leading edge factories and made a $3 billion strategic equity investment in ASML.

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    • trader_brad trader_brad • Jan 18, 2013 12:47 PM Flag

      So, let me get this straight... You think Intel having to spend an additional $4B ON TOP OF the annual $11B in capex just to keep its lead is a POSITIVE?

      Sentiment: Sell

      • 3 Replies to trader_brad
      • marsavian marsavian • Jan 18, 2013 1:17 PM Flag

        ' You think Intel having to spend an additional $4B ON TOP OF the annual $11B in capex just to keep its lead is a POSITIVE?'

        Not keep its lead, extend it. It can carry on using 300mm wafers and immersion technology but it will get greater competitive advantage and more bang for buck eventually with EUV and 450mm. This btw is for processes below 10nm i.e. in 2018+. Intel will lead here too as it did with Trigate/FinFET. Analysts can't tell the difference between cost and investment.

      • wallisweaver wallisweaver • Jan 18, 2013 12:57 PM Flag

        "So, let me get this straight... You think Intel having to spend an additional $4B ON TOP OF the annual $11B in capex just to keep its lead is a POSITIVE?"

        [Ah, let's address the complete fiction in your statement. It's the "just to keep its lead" lie. Intel has a huge lead in technology, fabrication and manufacturing. The spending on 450mm isn't to just keep its lead. It's to make a HUGE extension in its lead.]

        [These are just basic business concepts, short boy. CapEx isn't a bad thing if you can afford it, which Intel easily can, and you spend it on smart things that improve revenues and profits. Intel is making the smart expenditures. Do you actually know anything about fabrication, EUV or 450mm and the impact each has on profits?]

        Sentiment: Strong Buy

      • semi_equip_junkie semi_equip_junkie • Jan 18, 2013 1:56 PM Flag

        C.J. Muse - Barclays

        And just as part of that, are you capitalizing investment in ASML or the R&D investment in ASML?

        Stacy Smith

        No. Now that’s not a capital expense. It was an investment expense.

 
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