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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

3617.0. "SQF-Motorola Sale Price & Q2 Results" by BIGQ::WETHERELL () Fri Jan 06 1995 12:17

    
      Can anyone give me a good estimation of our SQF Chip Fab sale price
    to Motorola?  Caldwell says the figure will remain confidential but its
    just a matter of time before the actual is leaked.
    
    Also, does anyone know (with some degree of certainty) if Digital
    posted a profit last quarter (Q2)?  An operating profit that is.
    
    txs/Joel
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3617.1PCBUOA::KRATZFri Jan 06 1995 12:243
    The Boston Globe quoted an anylyst with an estimate of SQF going
    for $300m.  As for Q2, this is the quiet period.
    
3617.2300m goes into 1billion.....GLDOA::SCHESKYCasey Schesky Team Leader DWTFri Jan 06 1995 13:222
    Didn't we pay over $1billion to build SQF?  What a terrible  deal if
    $300 mil is the actual price!
3617.3CSOA1::LENNIGDave (N8JCX), MIG, @CYOFri Jan 06 1995 13:484
    I don't see how they can keep it _totally_ confidential; it'll have 
    to show up on our balance sheet/SEC 10-K/whatever at some point.
    
    Dave
3617.4 Only 97 more days...POBOX::CORSONHigher, and a bit more to the rightFri Jan 06 1995 14:334
    
    	-1 Yup. In April when we close out Q3. Exactly.
    
    		the Greyhawk
3617.5not even close...ALFA2::DWESTbut i play one on tv...Fri Jan 06 1995 15:0710
    re .2
    
    since the new fab at HLO (Fab 6) was less than $500 million and it's
    more advanced technologically and MUCH larger, i'd say that the 
    billion dollar guess is a tad overstated...
    
    considering when SQF was built, if we did indeed get 300 million for it
    i'd say it was a good price...
    
    					da ve
3617.6WSJ estimate at cost of facillityANGST::edlapt.zko.dec.com::marisonEd Marison TSEG-METIS ZKO1-3/J33 381-0618Fri Jan 06 1995 16:124
Wall Street J. put the cost of that facility at $300M in the
artical in todays edition.

	Ed
3617.7The deal is suppose to close around July 1995...ICS::ZAHARCHUKFri Jan 06 1995 17:327
Since July is FY Q1, the $'s would show up in mid-October
with the Q1 results. I'm not sure how much aggregating
is dowe for revenue below the operating line in the 
quarterly statments.

Bill Z.

3617.8YIELD::HARRISMon Jan 09 1995 13:2513
    As for the cost of SQF, I would guess that Digital spent around $400M
    on the building and equipment.  I seem to remember $250M for the start
    up, then we spent money upgrading equipment to be able to produce CMOS4 
    and more to increase the plants capacity. 

    Since the deal includes Motorola making material for Digital, you will
    need to see how much they make and at what cost and add (or subtract)
    that to the cash they pay to Digital.  
    
    To figure out what Digital really got you will have to wait two to
    three years and be real good at accounting.

    -Bruce
3617.9Is SQF the only COMS4 FAB running?DIODE::CROWELLJon CrowellTue Jan 10 1995 15:466
    
    Is SQF the only CMOS4 line running these days?  I remember hearing
    that the FAB was shut down in HLO..
    
    Jon
    
3617.10only one fab in HLO closed...ALFA1::DWESTbut i play one on tv...Tue Jan 10 1995 18:075
    fab 4 and fab 6 are still running in HLO...  fab 3 was shut down when
    CMOS 2 went end-of-life...  not sure if fab 4 is still running CMOS 4
    these days...
    
    					da ve
3617.11PAKORA::SWRIGHTUno CoCa Cola PorfavorTue Jan 10 1995 21:322
    
    I thought SQF was fab 4....  ???
3617.12LJSRV2::KALIKOWPentium: Intel's Blew-Chip SpecialTue Jan 10 1995 22:018
    Crikey, am I the *only* one who remembers that fab 4 refers to...
    
    ... the BEATLES!!!?????
    
    (grumble)
             buncha kids...
                           (gripe)
                                 :-)
3617.13Beatles? Bugs? Huh?CSEXP2::ANDREWSI'm the NRAWed Jan 11 1995 01:183
    I thought Intel was the only one with bugs in their chips, not
    Motorola!
3617.14(-: Bravo! :-)LJSRV2::KALIKOWPentium: Intel's Blew-Chip SpecialWed Jan 11 1995 03:481
    
3617.15NOVA::FISHERnow |a|n|a|l|o|g|Wed Jan 11 1995 05:351
    good one!
3617.16fyiYIELD::HARRISWed Jan 11 1995 15:5427
    FWIW:

    FAB4 and FAB6 are both in Hudson, FAB4 had been know as the Pilot line
    when it first opened.  FAB5 is the SQF FAB.  FABs 1-3 where also in 
    Hudson and have all been closed.  FAB4 expanded into the area that had
    been FABs 1 and 2.   

    SQF(FAB5) is running CMOS4s a .66� process (a 10% shrink of CMOS4) and a 
    little bit of CMOS5 a .5� process.  

    FAB4 is running CMOS5.

    FAB6 is in startup. It will run both .5�(CMOS5 like) and .35� (CMOS6)
    processes. 
    
  
    From what I have been told Motorola will have SQF running a Bi-CMOS
    process to produce communication devices.  No PowerPC stuff is currently 
    planned.  I think Motorola will rename the facility to something like
    MOS16.

    -Bruce