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Technology Stocks : Chartered Semiconductor of Singapore (CHRT)
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To: John Liu who wrote (6)4/20/2000 10:31:00 PM
From: Marty R  Read Replies (1) of 12
 
Well I don't know the answer to your question. But, I'll try to find out.

I'll tell you what I would assume. 1) They don't have to spend a great percentage on things such as R&D. The products they're going to fabricate would most likely be spec'd out and they just provide the facility to put it together. Not a small task, in and of itself. But, none the less a certain cost savings that can be recognized. 2) I would also assume that what they'd lack in margin would be made up in volume. How much do you think McDonald's make on a burger? Probably not much. But, if they can sell billions then it adds up. They must be expecting volume to pick up or they wouldn't be putting billion $'s into building a new fab facility. Finally, from what I understand they'll be making a lot of the chips for hand held mobile devices. How much growth do you think there will be in mobile phones, audio players, PDA's and untold other hand held devices not yet designed yet?

These are just presumptions off the top of my head. I don't have hard numbers but as time permits I'll see if I can't find some out.

You'll have to do your own DD before investing. I threw a few dollars into it while the market was down and we'll have to see what shakes out.
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