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I must say that I have really enjoyed the conversation on this thread, and just wanted to add my 2¢ worth. I agree with you that when ASPs, cash flows, etc. are low, as they are now, companies will not be going to 0.25µm rules for capacity expansion. Rather, I think that the move to 0.25µM is being driven by the huge performance enhancement provided by 0.25µM as compared to 0.35µM - faster communication related chips, processors, etc. Thus, for example, the first company that provides a given communication chip with 0.25µM features will be able to charge a large premium over the existing 0.35µM chip due to the enhance speed and/or features that the 0.25µM design will have and, therefore, will make large amounts of money until competitors also provide chips at 0.25µM. |
