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

To: Gottfried who wrote (37399)	9/22/2000 2:49:32 PM
From: Proud_Infidel	Respond to of 70976

Malaysia's 1st Silicon foundry startup begins qualification of fab Semiconductor Business News (09/22/00, 01:41:59 PM EDT) KUCHING, Malaysia -- Silicon foundry startup 1st Silicon (Malaysia) Sdn. Bhd. here today announced the start of its initial wafer runs for qualification of 0.25-micron processes and tools inside its new 200-mm fab. The foundry startup company completed the installation of fab equipment at the end of August, said chief executive officer Claudio G. Loddo, chief executive officer of 1st Silicon. "Qualification begins in earnest with these first engineering runs, and full qualification is expected by the end of Q4 2000," Loddo added, during a brief ceremony to commemorate the start of qualification steps in the plant. The company's 200-mm (8-inch) wafer fab is expected to have capacity in excess of 30,000 wafers a month when fully operational. The plant will initially produce products for foundry customers with a quarter-micron technology, licensed from partner Sharp Corp. of Japan. Three months ago, Sharp expanded its alliance with 1st Silicon to include an agreement to buy $300 million in processed wafers from the foundry. The foundry startup is back by the Malaysian State of Sarawak, which is hoping to attract more high-technology investments to Kuching on the Island of Borneo. Investments by government agencies are also part of Malaysia's Vision 202 initiative, which aims to grow the country's economy with leading-edge semiconductor manufacturing, including another foundry startup, called Silterra (Malaysia) Sdn. Bhd. in Kulim, on the Malay Peninsula. Silterra is also planning to finish up engineering qualification of its 8-inch fab in the fourth quarter this year, with first revenues starting the first quarter of 2001.

To: Gottfried who wrote (37399)	9/22/2000 2:59:36 PM
From: Proud_Infidel	Read Replies (2) \| Respond to of 70976

G, Numbers look very healthy Very healthy is an understatement. It can be very frustrating owning this sector- we always seem to be the whipping boy for one thing or another. Whether it is fears of a cyclical slowdown, a dampening of DRAM prices, or even overspending by the semi makers, lately we have had very few great weeks. Or even good ones for that matter. On the other hand the fiber optics guys like JDSU trade at stratospheric valuations. Yet over the coming 10 years(on average), I doubt their growth rate will much exceed AMAT. As a sector becomes profitable, more entrants arrive bringing margins down. JDSU or the fiber optics guys are no exception, yet the street has yet to realize this. With the internet, broadband, and wireless increasingly playing a role in the cyclicality, or lack thereof, in the SCE sector, we should see more favorable valuations since the cycle should be smoothed out. Fiber Optics are useless without the chips at either end to process data. When will the street underatnd this simple concept? BK, on a bad day

To: Gottfried who wrote (37399)	9/22/2000 5:42:03 PM
From: Cary Salsberg	Read Replies (2) \| Respond to of 70976

I am long and rooting for this sector, but the 3 month trend of bookings and billings, while positive and rising, is also flattening. If you believe in cycles and that a period of flattening will be followed by decreases, the multiple you are willing to pay contracts. On the other hand, if you believe that the flattening is due to capacity constraints on the part of the semi equip makers, you can buy bargains and expect a longer up cycle with gradual improvements in bookings and billing as capacity becomes less constrained. The front end is constrained by lithography, and the back end is constrained by the front end. A note to Brian K. - I am glad that you are limiting margin. There is more risk right now from economic and market factors than from semi-equip cycle factors, but it is generally prudent to cut capital equipment stock allocation in the face of economic slowdown and most investors don't follow the semi-equips as closely as you do.