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Politics : Formerly About Applied Materials

AMAT 301.88

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3:59 PM EST

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To: Proud_Infidel who wrote (51329)	8/31/2001 9:30:47 AM
From: Dr. Mitchell R. White	Read Replies (1) of 70976

Well, Brian, it looks like the children are being taken off the street. With Toshiba "surprising" the investment community, I bet we're not far from hearing about significant capacity "adjustments" (= fab closings) around the industry. Discussions of mergers, etc. is all part of that. Remember when TwinStar (TI JV, with Hyundai, right?) closed in north Texas? TI's partner sold out to TI for cents on the dollar, and then TI sold out of memory to Micron. Value of the two fabs sold by TI was over $2 billion, MU got them for $950 million. And TI floated $700 million in commercial paper to MU to make it happen! Meaning that for a while, MU had acquired a $2 billion asset for $250 million. So they could afford to take a competitor's fab off-line and mothball it. Capacity rectification at its finest. We'll see more such deals this time around, I bet. Mitch

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