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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Lone Star who wrote (33954)	2/1/2000 1:00:00 PM
From: Big Bucks	Respond to of 70976

LS, Excellent points!! There have been substantial investments made over the last year by many fabs and that will continue, but maybe not at the growth rate we've experienced recently. I think profitability will be the main impetus for chip companies for the rest of this year. If their profits increase q-q then investors are more willing to pay a premium for the stock which gives more investment leverage for future growth/expansion. I think most chip companies will be conservative and try to maximize their current production capacity with existing equipment sets for the most part. 300mm will be the catalyst for the next huge chip/equipment boom and it will take staggering investment capital to play in that arena, to get there profits must be maximized now to insure capitalization is available for the future new fab construction boom. JMO, BB