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

To: daryll40 who wrote (38104)	10/11/2000 8:01:37 AM
From: Liatris Spicata	Read Replies (1) \| Respond to of 70976

I suppose it doesn't prove much, but it's hard for me to square the following, adapted from an article by Joesph Pereira in today's WSJ, with the end-of-cycle scenario for the semi-equips. Larry <<IBM plans to invest $5 billion over the next two years to expand semiconductor manufacturing, saying it needs more capacity to meet rising customer demand. The plan calls for the construction of a $2.5 billion facility in East Fishkill, N.Y. The balance of its investment will be used to upgrade several chip-making facilities in Europe, Japan and the U.S. The announcement comes at a time of weakness in the general-purpose semiconductor market, as demand has slackened and excess inventory accumulated.But IBM said that the market segments it has its eye on -- namely high-speed chips designed for big servers and custom-made ones tailored for specific clients -- are outpacing other parts of the business. Semiconductor-sales growth "has been at greater than 50% this year, and we can't keep up with the demand of our customers," said John Kelly, senior vice president of IBM's technology group. Intel Corp., the Santa Clara, Calif., chip-making king, and Taiwan Semiconductor Manufacturing Corp. have also announced multibillion-dollar plans to build plants for making high-speed chips. In all, about $36 billion has been earmarked for high-end chip manufacturing this year, according to Gartner Group/Dataquest Corp.>>

To: daryll40 who wrote (38104)	10/11/2000 8:09:32 AM
From: robert b furman	Read Replies (1) \| Respond to of 70976

Hi Daryl, Your clear logic should be read over and over today by just about everyone.Thanks for a calm reminder of reality.I agree and hope that the lemmnigs do as well. <ggg> Bob