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Politics : Formerly About Applied Materials

AMAT 301.11

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Jan 9 9:30 AM EST

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To: Katherine Derbyshire who wrote (59011)	1/17/2002 4:51:47 PM
From: Sam Citron	Read Replies (2) of 70976

I'm pretty sure [11%] is the [capex/sales] number that Intel targets. INTC targeted 6B capex in 2000 and 7.5B in 2001. ebnews.com INTC sales were 33.7B in 2000 and 26.5B in 2001 intc.com Thus their capex/sales was 17.8% in 2000 and 28.3% in 2001. INTC ended up spending 7.3B in '01, so the actual capex/sales ratio came in at 27.5%. Do you really mean to tell me that they target 11% except in a metaphysical sense? Furthermore, Joe Osha gives 1960-2002E capex/sales industry data (at least for fabless semiconductor industry) at intc.com Click anywhere on title page of his FSA powerpoint presentation 10 times to get to the chart at issue. It shows a pretty regular sine wave pattern with troughs at 19% and peaks at around 29%. Therefore I am very interested in this 11% rule of thumb that you mention. Sam

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