Mohan: I saw your profile and I read your post. Being a systems guy you are concerned about the hardcore finance stuff and being a finance guy I am talking about the business side of the story. Only in this thread we can have such a cross pollination of knowledge.
Anyway. It is imperetive that Fab has to modernize to keep themselves in the business. That is given and that is name of the game. On Most occassions fabs capacity is booked in advance based on their technological roadmap. This forces fabs to go towards the latest/greatest tools. If a fab doesnt have that then they will lose their current business also. I know TSMC very well I have been in bed with them for a long time. Your statement that fabs dont make money is not true. I will give you the following fact. Last year TSMC employees on an average got US$150K each as bonus. I mean US Dollar. Please look at TSMC annual report to confirm.
You are saying "(chips)glut glut everywhere" That is true. If you take an inventory of yourself you will be carrying at least 30-50 grams of silicon products. Let me guess:
Your watch will contain 5-10 grams of silicon chips
Your Car Key will have 5 grams of silicon chips
Your Calculator will have at least 10 grams of silicon.
YOur cell phone probably will have at least 20 grams of silicon chips.
All of the above silicon product you will change at least once in 3-4 years.
In my opinion, an average American carry more silicon with them all the time than any jewellery. I personally dont wear jewellery but I carry, cellphone, calculators, watch,car keys, my organizer (PDA).
We are not even talking about PCs , & other electronic gadgets, printers, scientific instruments, cameras, etc.,etc.,
The point I am making is that silicon is everywhere and it is growing. Soon it has become an integeral part of humans. This trend is going to continue at a faster pace between now and end of the century.
I hope I make some sense.
Regards
Kumar. |
