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To: Jong Hyun Yoo who wrote (3940)1/28/2000 9:00:00 PM
From: Proud_Infidel  Respond to of 5867
 
Chips embark on road to 20 gigahertz
By Michael Kanellos
Staff Writer, CNET News.com
January 28, 2000, 11:40 a.m. PT
If certain technological hurdles can be cleared, processors running at a mind-boggling 20 gigahertz could be commercially available in the next eight years.

But what does that mean for the companies producing the chips? Mastering lots of arcane technology and lots of headaches for the research department.

It's not just about transistors anymore: Tantalum oxide chip gates, extreme ultraviolet (EUV) lithography, new microarchitecture and better insulation are some of the
developments that will come to the microprocessor arena in the next decade so that chips can continue to increase in performance according to Moore's law, Intel researchers said this week.

The oft-quoted Moore's law states that microprocessors double in power approximately every 18 months, the prediction of Intel cofounder Gordon Moore.

In addition to technology hurdles, Intel is also working on the other problem with multi-GHz chips: namely, what to do with them. The company is increasing its investments in applications, such as visual recognition software and other input devices, so that people will be able to take advantage of chip power, said Fred Pollack, director of measurement, architecture and planning for Intel's microprocessor products group. More chip families will likely result as well.

"We're going to have different microprocessors designed for different market segments," Pollack said. "Intel is already going in a number of new directions."

But dealing with these increasingly complex methods won't be easy, and more problems could emerge. "The physics of driving (chip) clock rate is fundamentally getting harder," said Nathan Brookwood, principal analyst at Insight 64.

The research currently under way largely comes as a logical by-product of the microprocessor business, according to Sunlin Chou, vice president and general manager of Intel's technology and manufacturing operations. To stay on top of Moore's law, semiconductor manufacturers have continually increased the speed and shrunk the size of chip transistors.

Annually, chip speeds in terms of megahertz have increased by 50 percent a year, Brookwood said. That could mean 4-GHz chips by 2003 and 20-GHz chips in 2008.

Unfortunately, today's technology won't allow for that to happen. The largest roadblock right now lies in lithography, the process of etching circuitry onto chips, Chou said. The light waves currently used to inscribe images into silicon are too thick to be used when microprocessor makers will have to move to the 0.07-micron manufacturing process approximately five years from now. It's like trying to sculpt eyelashes with a club.

EUV is still under development but is leading x-ray as the next candidate. "EUV will start to become important," Chou said, adding that similar roadblocks have been swept away in the past. A decade ago, after all, researchers thought they would be hitting the 250-MHz level sometime this year.

"The frequency road map has gone (further) up than the forecasts," he said. "There is at least another decade worth of scaling."

Power consumption and heat stand as other problems. Although chips have been shrinking in size, their power requirements have been increasing because of added transistors and faster speeds.

"This creates a multiplicity of problems. Cooling is one of them but it is not the dominant problem. Actually supplying power to the chip is the primary problem," said Pollack. Another problem: as chips get smaller, they begin to "leak" electricity, which can scramble signals.

To get around the issue, the company is examining different insulating materials. Silicon oxide transistor gates, for instance, may get replaced with thinner aluminum, titanium or tantalum oxide gates within four to six years, said Mark Bohr, director of process architecture and integration at the company.

Microprocessor designs, and market segmentation, will also be rethought with an eye toward efficiency and low-power requirements, added Pollack. In the future, transistors could be activated by a few electrons, speculated Dean McCarron, principal at Mercury Research. Right now, transistors get bombarded.

But does anyone need a 20-GHz chip? Not at the moment, but efforts are under way to get software developers to figure out how to harness the power. Voice recognition server applications that would let keyboard-less devices such as cell phones connect to databases remain a possibility. The company is also working on Mandarin-English voice recognition tools in Beijing, he added.

Still, "There aren't as many apps as we'd like," said Pollack.

yahoo.cnet.com



To: Jong Hyun Yoo who wrote (3940)1/28/2000 9:23:00 PM
From: Cary Salsberg  Read Replies (3) | Respond to of 5867
 
Hi,

I have a few questions.
Today we saw an estimate of ~$5.00 for FY '01. I have been thinking that the peak year will be '02 - '04 and if it is '04 then the peak earnings will be ~$8.00. In the previous up cycle the peak price lead peak earnings by about a year and the peak multiple was ~20.

My questions:
1. What year do you see as the peak earnings year for this up cycle?

2. How did you arrive at a PE of 32 times peak earnings?

Thank you.



To: Jong Hyun Yoo who wrote (3940)1/30/2000 11:30:00 AM
From: Proud_Infidel  Respond to of 5867
 
Looks like she may have sold it since it's not in the Top 10 as of Dec 31st

*************************************************

Pilgrim's Mary Lisanti Grabbed Opportunities: Personal Funds
By Kathie O'Donnell
Pilgrim's Mary Lisanti Grabbed Opportunities: Personal Funds

Phoenix, Arizona, Jan. 26 (Bloomberg) -- Mary Lisanti got
into stock picking because she couldn't afford law school. Plenty
of investors are glad she did.

Lisanti's $570 million Pilgrim SmallCap Opportunities Fund
returned 146 percent last year, putting it in the top 1 percent of
small-cap growth funds tracked by Chicago-based Morningstar Inc.
Aiming to keep returns up, Lisanti said the fund is closing to new
investors Feb. 29.

Lisanti, who took over the fund from Louis Navellier in July
1998, bet big on a rebound in Asia, buying companies whose shares
were hammered by the economic slide there that began in 1997. She
bet right.
``I think we took advantage of the concerns about Asia,'
said the 43-year old Princeton University graduate. ``We bought a
lot of technology stocks, semiconductor, semiconductor capital
equipment, telecom, datacom companies that were selling at very
cheap prices.'

Adding to the revival in Asia was a rebound in small-cap
stocks last year from ``one of their worst years in decades' in
1998.
``They were very cheap,' she said. ``The market as a whole
was pretty shaky.'

Pilgrim SmallCap returned 6.94 percent that year to lag the
benchmark Standard & Poor's 500 Index by 22 percentage points.

Once the Federal Reserve began cutting interest rates, small
caps started to rebound, Lisanti said. Among the biggest gainers
were the Internet-related and biotechnology stocks on which she
focused.

Contents

``If you look at what's going on with our telecom
infrastructure, on top of our telephone structure we are building
another data network to handle the Internet,' she said. ``So
there are a lot of new companies that became public in that
timeframe that we think will be a critical component of the
success of this new network.'

Lisanti cited San Diego-based Applied Micro Circuits Corp. as
one example.
``Fairly significant' exposure to biotechnology stocks also
helped in 1999, Lisanti said. The fund's biotech holdings include
Abgenix Inc. and Alkermes Inc.
``Biotech did very well (last) year, particularly in the
latter part of the year,' she said.

Technology stocks represent the fund's biggest sector holding
at about 40 percent. Instead of sectors, Lisanti groups fund
holdings into themes. Last year's themes were: The
Telecommunications Explosion, Ubiquitous Semiconductor, Managing
the Information Age, Life on the Net, Life Sciences Revolution,
and Re-energizing America.

Few themes do more for returns, though, than spotting a
bargain -- like Lam Research Corp., a maker of equipment used to
produce semiconductors.

Lam was among stocks battered by Asia's woes that Lisanti
bought in late 1998. The Fremont, California-based company Monday
said it will split its shares three for one after they rose
fivefold in the past year.
``At the time we bought Lam it was selling at about $9,'
said Lisanti. ``It's selling at $134 now,' Lisanti said, adding
that the ``ridiculous' $9-dollar price stemmed from Asia fears.


Risks

Small-cap stocks are historically more volatile than big-
caps, said Lisanti.
``You go in with a three-to-five year time frame and you are
going to do very well. Day traders, are going to have a tough
time.'

Performance

Pilgrim SmallCap Opportunities ranked 11th out of 192 small-
cap growth funds in 1999, according to Chicago-based fund tracker
Moringstar Inc. The fund's average annual return over the past
five years was 34 percent, according to Bloomberg Fund
Performance. That topped the Standard & Poor's 500 Index's 27
percent, though the fund lagged the index the four years before
the last one.

The fund saw outflows of $25.5 million in 1999 through Nov.
30, according to Financial Research Corp., a Boston-based mutual
fund consultant.

Leadership

Lisanti, who has more than 20 years experience in financial
markets, joined Northstar Investment Management Corp., a mutual
fund unit of ReliaStar Financial Corp., in May 1998. ReliaStar
purchased Pilgrim Advisors Inc. in October 1999. She was named
fund Manager of the Year by Barron's in 1996.

In addition to Pilgrim SmallCap, Lisanti also oversees all of
Pilgrim's equity mutual funds. She serves as co-portfolio manager
on the $100 million Pilgrim MidCap Opportunities Fund and as lead
manager of the $465 million Pilgrim Growth Opportunities Fund, a
large-cap fund

From August 1996 to May 1998 she worked at Strong Capital
Management, where she managed the Strong Small Cap Fund and co-
managed the Strong Mid Cap Fund. From 1993 to 1996 she worked at
Bankers Trust Corp, where her last position was head of small- and
mid-capitalization equity strategies. Earlier in her career she
was a fund manager at Evergreen Funds. She began her career at
E.F. Hutton in 1979.

Lisanti graduated cum laude from Princeton University with a
Bachelor of Arts degree in English.

Cost and Taxes

The fund's A shares have an expense ratio of 1.47 percent,
below the 1.68-percent ratio of the average small-cap growth fund
according to Morningstar. The fund paid capital gains of $7.56 a
share in 1999.

Investment Objective

Pilgrim SmallCap Opportunities strives to maximize long-term
capital appreciation by investing in equity securities of
primarily small U.S. companies.

Fund Facts

To purchase the fund: 1-800-334-3444

Following are the fund's top 10 holdings as of Dec. 31 and the
percentage they represented of its assets.

TriQuint Semiconductor Inc. 2.4
Korn/Ferry International 1.4
Accrue Software Inc. 1.3
Proxicom Inc. 1.3
Braun Consulting Inc. 1.3
Protein Design Labs Inc. 1.2
QRS Corp. 1.2
Cumulus Media Inc. 1.2
Kulicke and Soffa Industries Inc. 1.2
Emmis Communications Corp. 1.1



To: Jong Hyun Yoo who wrote (3940)1/31/2000 11:52:00 AM
From: Proud_Infidel  Respond to of 5867
 
This should help our cause:

Japan's PC Sales Soar to Record Level As Y2K Issue Ends
January 31, 2000 (TOKYO) -- Personal computers sold like pancakes in the over-the-counter market in Japan during the first week of January 2000.




PC sales in units more than doubled compared with the same week a year ago, and surpassed the record high figure registered in the first week of December 1999 by 24.6 percent.

According to Gfk Japan Ltd., an information services company handling POS data for 55 volume sales companies of home electric appliances, PC sales at about 2,000 large-scale retail stores in the first week of January 2000 (Jan. 3-9) increased 38.9 percent in units compared with the previous week, and were up 41.1 percent in value.

Compared with the same week a year ago (Jan. 4-10 1999), PC sales soared 110.4 percent in units and 85.8 percent in value. The average sales price was 197,898 yen, up 3,005 yen from the previous week's 194,893 yen. (105.70 = US$1)

Ordinarily in the winter PC sales wars, the peak period comes in the first week of December, immediately after the bonus payment by private enterprises, and declines gradually after that.

In the winter sales during the week of Dec. 6-12, 1999, PC sales went extremely well, exceeding the figure for the same week the year before by 29.4 percent in units and renewing the highest record of weekly sales units. But this year, PC sales in the first week of January broke this record with skyrocketing sales in units.

What lays behind the scene seems to have been the Year 2000 computer problem. PC sales grew particularly strongly during the three-day weekend covering Jan. 8-10. Some of the large-scale retail stores said many people probably waited until the government and industry sources declared safety concerning the Y2K problem before going to make their purchases.

In fact, some of the customers visiting their stores in December 1999 only asked questions about the specifications of the models they had in mind and possible effects of the Y2K problem, but went away saying that they would wait until after the New Year to buy the product.

By contrast, those who visited the stores early in the new year already had in mind the models of their choices and made the purchases as soon as they came into the stores.

This type of behavior presumably resulting from the Y2K problem was common among elderly customers who were buying their first personal computer.

It is also quite possible that people who had to work during the year-end and New Year's holidays to cope with the possible Y2K problems were among those customers who purchased the PCs during that peak period. The first week of January this year contained three holidays.

GfK Japan collects POS data from 55 IT-related retail sales companies centering on high-volume stores specializing in home electric appliances. It covers about 3,200 stores (as of April 1998) throughout Japan.

In cooperation with GfK Japan, Nikkei Market Access provides weekly reports of PC sales in volume and value.

The sales data has been based on the same 41 companies (with about 2,000 stores) since April 1996.

The number of PCs sold at the 2,000 stores is estimated to comprise about 10 percent of gross domestic shipments, and when limiting the sales to the retail sales channel, the share comes to about 25 percent of such shipments.

nikkeibp.asiabiztech.com



To: Jong Hyun Yoo who wrote (3940)2/2/2000 12:44:00 PM
From: Proud_Infidel  Respond to of 5867
 
New Report: PCs Continue To Have Edge Over Mobile Phone For Semiconductor Consumption
The top consumers of semiconductors are computer manufacturers, but communication companies increased their purchases of semiconductor products in 1999. The top four original equipment manufacturers (OEMs) purchasing semiconductors in 1999 were computer companies. Positions five through nine of the top semiconductor purchasers were communication companies.

Dataquest researched 45 Americas-based OEMs, 22 European-based OEMs, as well as nine contract manufacturers. The spending patterns for application segment, semiconductor device types and geographic region broke out these manufacturers. "The world-wide personal computer industry continues to post double-digit growth, and the semiconductor companies are reaping the benefits, as the top four purchasers of semiconductors spent more than $25.8 billion in 1999," said Benjamin Thompson, industry analyst for Dataquest, "Wireless technology is driving strong semiconductor sales in the communications market."

Compaq was the No. 1 OEM as it spent $8.5 billion on semiconductors in 1999. IBM was the No. 2 OEM with semiconductor purchases of more than $5.9 billion. Driven by its strong growth in the PC market, Dell's semiconductor spending increased to nearly $5.9 billion in 1999. In 1998, Dell spent slightly more than $4 billion. Hewlett-Packard was the No. 4 OEM with $5.5 billion.

Communications manufacturer, Siemens was the No. 5 vendor with semiconductor purchases of $4.9 billion, followed by Motorola with spending surpassing $3.2 billion. Ericsson was the No. 7 vendor with semiconductor purchases reaching $2.4 billion, and Nokia was No. 8 with consumption of nearly $2.3 billion. Lucent was the No. 9 manufacturer at $2.2 billion, and Intel was the No. 10 OEM with semiconductor consumption of nearly $2.2 billion.

The leading applications for worldwide semiconductor consumption in 1999 were for data processing, followed by communications, automotive, industrial, consumer, and military/aerospace.

"Though smaller than the computer or communications industries, tremendous growth opportunities abound in both digital consumer and automotive electronics," said Mr. Thompson. "For example, we predict the semiconductor value in DVD players to grow at a compound annual growth rate (CAGR) of 45 percent through 2003. Likewise, semiconductor consumption in automotive navigation systems is expected to grow at 39 percent through the same period."

Edited by Mark Osborne

semiconductorfabtech.com



To: Jong Hyun Yoo who wrote (3940)2/7/2000 11:30:00 AM
From: Proud_Infidel  Respond to of 5867
 
Lam Research Reiterated 'Strong Buy' at Deutsche Banc AB
By Sybil Carlson
Princeton, New Jersey, Feb. 7 (Bloomberg Data) -- Lam Research Corp.
(LRCX US) was reiterated ''strong buy'' by analyst Glen Yeung at Deutsche
Banc Alex. Brown. The 6-month target price is $185.00 per share.