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Technology Stocks : Semiconductor and Semi-Equipment Analysts - Their Calls -- Ignore unavailable to you. Want to Upgrade?

To: FJB who wrote (95)	8/11/2000 9:42:31 AM
From: Katherine Derbyshire	Respond to of 195

Most of the statistics I have seen do not include fabless company revenue--they treat fabless companies as buyers as you suggest. The problem is that fabless companies pay for chip manufacturing only, while "normal" customers (electronics OEMs) also pay for amortized design costs. Therefore, 1 million chips from a foundry will contribute less to "total semiconductor revenue" than 1 million identical chips from, say, Intel. None of this mattered when foundries were making insignificant numbers of trailing edge chips. It matters a lot now that foundries are making very large numbers of leading edge chips. Katherine