Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : ADI: The SHARCs are circling! -- Ignore unavailable to you. Want to Upgrade?

To: MarkR37 who wrote (2200)	9/26/2000 11:51:51 AM
From: Bosco	Respond to of 2882

Hi Mark - no one knows for sure of course, but $1B is probably not enough to build a fab, maybe upgrade to get better yields. Again, my guess is that the proceed is probably for a variety of reasons, and she is not in a dire need for capital, so it is likely she is locking in some good rates. And 4.75% with a conversion price of $129 is a pretty deal. best, Bosco

To: MarkR37 who wrote (2200)	9/26/2000 4:39:47 PM
From: Jim Oravetz	Read Replies (1) \| Respond to of 2882

A brand new, state of the art product fab would cost from $1-2B. It would not come on-line for at least two-three yrs -- well into the gray area of demand. ADI more likely will use the cash to make purchase(s)/investments of companies along with some fab expansion -- if they have room in an existing fab. Semi product tool deliveries are stretching out more, but delivery could happen sooner than starting from a new building position. ADI products, in general, are not leading edge - 0.18-0.25 micron line widths - are not required to make op amps and converters. Maybe the SHARC family needs leading edge stuff. That would be made, IMHO, by UMC. They own leading edge fab equipment. Here is a FYI on cap spending plans for the top 10. Capital Equipment Spending For Top TEN IC Mnfg Companies in $ millions. Announced Rank 2000 1999 '99 Spending '00 Spending Growth Rate(%) 1 1 Intel $3,300 $6,000 82 2 2 TSMC 1,846 4,693 154 3 6 STMicro 1,348 2,500 85 4 3 Samsung 1,600 2,400 33 5 4 UMC 1,700 2,400 41 6 9 TI 1,200 2,350 96 7 5 Motorola 1,540 2,300 49 8 8 Hitachi 1,300 1,715 32 9 7 NEC 1,315 1,665 27 10 11 Hyundai 965 1,500 55 TOTAL 16,314 27,523 69 Source: IC Insights What's Up From SEMI - Industry Research & Statistics September 2000 Equipment Makers Ponder Revised Forecast Estimates By Craig Klootwyk Market Analyst, SEMI Over 250 industry leaders turned out on August 23 for a luncheon discussion centered on the forecasts for the semiconductor and semiconductor equipment markets. SMECS, the Sales and Marketing Executive Council of SEMI, hosted the luncheon held at The Westin Hotel in Santa Clara. Speakers on the booming growth of the industry included Dan Hutcheson, President of VLSI Research, Klaus Dieter Rinnen, Chief Analyst and Director of Semiconductor Equipment Manufacturing and Materials, Dataquest, and Clark Fuhs, Vice President, J.P. Morgan. Hutcheson and Rinnen both commented on revisions to their earlier forecasts for semiconductor and semiconductor capital equipment markets. In January of this year, Rinnen had predicted a 22 percent annual growth for the IC market, with even faster growth expected in the DRAM sector. Hutcheson of VLSI estimated 25 percent annual growth for IC sales at the beginning of 2000. Stronger than expected demand in the first half of this year has prompted both analysts to revisit their initial estimates. A consensus revealed that the semiconductor market is headed towards 40 to 45 percent growth in sales for 2000. The growth is being fueled by "the consumerization of the digital era," claims Fuhs, who tracks chip industry supply and demand...... ....Fuhs mentioned that fab utilization rates in the U.S. have trended towards an unprecedented 95 percent, according to Federal Reserve Board data. Logic manufacturers and foundries drove capital spending in the first half of 2000, and spending for additional DRAM capacity is expected to follow. Expectations are that fab capacity will remain tight at least through 2002. semi.org!OpenDocument Jim