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To: slacker711 who wrote (111221)	4/19/2012 11:26:24 AM
From: Jim Mullens	1 Recommendation Read Replies (2) of 117506

Slacker, re: Increases Fab expenses / options. I think that there is a significant probability that increased fab expenses are going to become a permanent part of Qualcomm's business model. Good points. BOA/ Merrill touched on this issue in their QCOM Q2 report this AM. …new complexities / challenges w/ each transition the chip industry has made to smaller geometries....“chronic” problems could ultimately force Q into a tighter foundry relationship / outright integrated mfg…at least at the leading edge…. Also mentioning INTC aggressive positioning . Q has taken the JV approach with Mirasol in both the original and new fab facilities. Perhaps, as you suggest, putting the off-shore cash to work in a smaller leading edge fabrication facility would be a wise investment …. To accelerate the production ramp of state of the art technologies before shifting heavier volumes over time to traditional fabs after they’re upgraded.