Zeev,
Sounds like you might have dictated this story to the DJ guy.
Perhaps he reads this thread. :-)
Ian.
++++++++++++
Memc Electronic Materials Inc.
Dow Jones Newswires -- June 10, 1999
DJ MEMC Up 10%; Analysts Cite Intel's Move To New Wafer>WFR
NEW YORK (Dow Jones)--MEMC Electronic Materials Inc. (WFR) shares climbed 17% Thursday, on top of an 11.6% rise Wednesday, following Intel Corp.'s (INTC) announcement it was moving to a new silicon wafer and positive comments from an industry group.
On Wednesday, Intel said it plans in 2002 to start production using a 300-millimeter wafer, which would double the silicon wafer's surface compared with the current standard 200-millimeter wafer.
Silicon wafers are the building blocks of semiconductors, which are found in most electronic appliances from computers to cellular phones.
Intel's plan to use the new wafer is positive news for wafer makers like MEMC because new wafers have "stronger average selling prices," Banc of America Securities analyst Brett Hodess said.
However, it will be several years before MEMC and its competitors see any "material revenue," Hodess added.
A.G. Edwards & Sons Inc. analyst John Gentle said Intel's move is a "mixed blessing" for wafer makers.
"It's good if we don't get a very quick move towards 300 millimeters," Gentle said, because "the capital requirements from MEMC and its peers building facilities to ramp up production will be huge and they're not in a good position" to make those investments.
"If we move to 300 millimeters too quickly, you're looking at chances that these companies won't get a substantial payback for their 200 millimeter capital outlays," he said.
Analysts also said MEMC stock gained on an industry research group's bullish forecast Wednesday for 1999 semiconductor sales. The Semiconductor Industry Association predicted world-wide chip sales for 1999 of $140.8 billion, up 12% from $125.6 billion in 1998.
MEMC officials weren't immediately available to comment.
Shares of MEMC, St. Peters, Mont., recently traded at 10 11/16, up 1 11/16, or 18.8%, on volume of 301,900, compared with average daily volume of 71,800.
- Marcelo Prince; 201-938-5394
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