Formerly About Applied Materials Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials

AMAT 230.17

-1.4%

Nov 7 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Katherine Derbyshire who wrote (30704)	5/28/1999 11:33:00 AM
From: Jack Kunkle	Read Replies (1) of 70976

Katherine: <The precise ratio between cost per transistor (which drops) and cost per chip (which historically increases but has decreased the last three years) determines whether the chip companies make a profit or not, and therefore whether they build more fabs.> I think that one has to distinguish between prices and manufacturing costs. I believe that prices normally trend downward. This is certainly the case for commodity products. In technology all products ultimately become commodities. If a manufacturer wants to serve a commodity marketplace then they must come to terms with their cost structure. In an environment where "prices" normally trend downward suppliers must continue to invest so that their cost structure enable them to continue to be in business. I believe that this is what AMAT is all about coupled with being the enabler of Moore's law. I bet that Micron is making some money today because it invested in 1998 relative to the Japanese who did not, and thus are not able to respond to the relentless decline in pricing. Regards, Jack Kunkle

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next