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Technology Stocks : General Lithography -- Ignore unavailable to you. Want to Upgrade?

To: SemiBull who wrote (1131)	2/8/2000 5:38:00 AM
From: Andrew Vance	Read Replies (2) \| Respond to of 1305

Keep in mind that LSI bought Symbios Logic which uses ASML systems in Coloraod Springs. With the LSI process and the fact that we are dealing with a foundry, I would lean towards the ASML or Nikon systems and not the SVGL systems. I have no rationale for this other than what I perceive to be common sense. A foundry has two customers, Fabless companies and those with internal manufacturing capacity. The SVGL system is very narrow in its market implementation other than INTC and some other places that do not normally use foundry services. When you use a foundry in addition to internal capacity, you want the ability to ship your reticles and tooling to the foundry, back and forth as you ramp them up and down. Reticles are becoming increasingly expensive and the cost of tooling for the SVGL Micrascan when you do not have systems in your own fabs could be prohibitive if you decide to pull back your foundry work into your own fab. Not that this is the wherewithal but this is how we did things when we looked for foundry capabilities. While the foundries usually go for the mnost state of the art and the best equipment available, I would think they would ramp up with litho tools that were closely matched to their customers. Now, to support your desire to see SVGL in there, I give you this ray of sunshine. The foundries are further along the curve than the customers they service. These customers could be using foundries for their initial production volumes until they can expand or build new facilities. as the lead sled dogs, these foundries could influence the upcoming purchases. This might be the best thing to happen for SVGL. Now for thw stake in the ground such that it does not look like I covered all bases and straddled the fence. My stake in the ground is ASML if Nikon can't deliver since both Samsung and INTC (as well as IBM) should consume all of SVGL's immediate capacity for systems. With all of the recent INTC announcements for expansions in AZ and CO, to name two, I think SVGL has its hands full. I also believe that even though the fabless companies do not care what systems are used, those companies with internal manufacturing capabilities will probably look at the cost of tooling and look for foundries with similar exposure equipment as theirs. This is how we did it in the past and it makes the greates sense to me. andrew andrew