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

To: w0z who wrote (37085)	8/30/2000 2:42:10 PM
From: w0z	Respond to of 70976

Regarding parts shortages, it would not surprise me at all if some creative bargaining is not going on everywhere in the industry. AMAT to INTC: "Give me those high end processors and I'll make sure you get your 300mm line up on schedule." ...stranger things have happened...just be thankful you are not a toy manufacturer that has no real bargaining power and whose end products have such low value that they cannot pay grey market prices on critical components that are being bid up for more expensive products.

To: w0z who wrote (37085)	8/30/2000 3:31:03 PM
From: Sun Tzu	Respond to of 70976

OK, so they are being creative in their answers. And yes I do know first hand of the horse tradings that goes on in the high tech world. But the question remains; which of the semicaps are most likely to fill their customer demands. Ironically, the ones with the smallest backlog may be the ones who are managing their supply chain most effeciently. Next time I will ask them more specific questions about the production bottle necks. There is of course another possibility. And that is that the chip makers have simply not ordered enough equipments. Does anyone have historical data on chip makers' capacity utilization and sales, versus equipment orders and equipment backlog? It would be interesting to see the correlations over a the past few cycles. ST