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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Ausdauer who wrote (9171)	2/17/2000 9:16:00 PM
From: Craig Freeman	Respond to of 60323

Ausdauer, re: "UMC is on a roll". I bought a measly 100 shares of TSMC (UMC's major competitor) a couple years ago and it is up 600%. If anything kept TSM from rising further it has been UMC. UMC is ahead on reducing line widths so it should have no problem running as 100% capacity. You would figure that both companies would be bidding against each other on every available fab but, strangely, neither came up with a satisfactory bid for NSM's Portland facility (when they had a chance). While UMC is scheduled to move to 0.15, INTC can't get enough production out at 0.18u to satisfy demand and isn't scheduled to go copper for some time. INTC's 0.18u may be better than UMC's 0.18u but UMC at 0.15u is definitely "state-of-the-art". AMAT's recent earnings report beat estimates so you can be sure that most of the existing fabs are gearing up to produce smaller line widths. In the interim, both UMC and TSM will have a "field day". The fact that SNDK owns a chunk of UMC is very satisfying. The forthcoming "one-time gain" on SNDK's UMC shares will be VERY nice. What I don't know is how any gains in UMC's share price will translate into earnings on SNDK's books. Craig