Please re-read Doug's messages.
You CAN NOT compare DRAM to SILICON. Trying to compare these two is like trying compare apples to pineapples. Or Boeing to Microsoft.
Silicon is an organic material that is used in all kinds of appliances, even refrigerators, televisions, cell phones--all kinds of things.
As far as how semi-conductors are made, you might see a demonstration if you watch Paul Kangas Wall Street Wrap-Up, on a regular basis. Silicon is used to make a round wafer.(The wafer looks like a CD or even an old record)
Chips are put on the wafer, baked and afterwards, they are broken apart and packaged individually.
The process that I have described above is over-simplified. That means it is more complicated that I can describe. I just wanted to give you a basic understanding of what goes on.
The point is that the chips are sold to companies other than Micron Tech or other semi-conductors. Automobiles even have chips, for instance.
Since the semi-conductors monthly book-to-bill ratio will be released today. You might take a look at Paul Kangas nightly news. They may show how a wafer and chips (all kinds) are put together to form a final product.
While there is a glut of dram or memory chips on the market, I have not heard that wafers are flooding the market and driving the price of wafers down.
As Doug has said, MEMC or WFR's inventory of wafers is sold out one-year in advance. Their inventory for 1996 is sold out. Most of 1997 is also probably sold.
Think how happy GM or Ford would be if they could say that all of their 1996 cars have been sold. And if you wanted a new car, you would have to wait until some date in 1997!
Also, as companies become more sophisticated they will turn to chips to replace obsolete materials. For instance, my old fridge uses freon to keep it cool. The problem is that freon damages the ozone layer.
Soon, new refrigerators will have a semi-conductor memory chip that will control the temperature. You will be able to program it to a desired temperature. I do not know how the cooling process works though. |
