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To: Charles R who wrote (17476)	11/2/2000 10:38:01 PM
From: tejek	Read Replies (2) \| Respond to of 275872

So, this is a industry problem and not just KLICs. The question is are the current expectations for KLIC and other players in line with this. I am afraid the answer is "not quite". We may have to go through Q4 for all this to be digested. Charles, Do you know which other equipment makers have warned? ted

To: Charles R who wrote (17476)	11/5/2000 1:42:58 PM
From: Dan Spillane	Read Replies (2) \| Respond to of 275872

The market seems to be looking in a rear-view mirror that is also a magnifying glass, while at the same time ignoring the telescope to the future. So are those semi companies who cancelled the semi equipment orders. If history is any guide (and in this case it surely is, based on economics), lower investment in semi capital equipment will lead to yet another wave of future undersupply of semiconductors--yes, meaning firmer chip prices ahead. Look at what happened in October 1998...the asian companies didn't invest in semi fabs, and this led to outstanding profits later. The same cycle is happening right now in Taiwan--a financial collapse is leading to less investment in semi fabs: finance.yahoo.com^TWII&d=3m Importantly, I've noted that while a few EPS estimates for semi companies next year have been trimmed a bit, just as many others have gone up (semi fab companies are completely a different issue). This differs from what happened in the past. With good reason--the new wireless license auctions in Europe are now essentially complete. Therefore, there is a huge wave of 3G network upgrades starting in short order. Putting up new demand as well, are the three new video game systems--which have the capacity of PCs (128 bit processor on the X-box with huge memory needs!). Not to mention, the handheld PC growth explosion--with there already being shortages of chips. While at the same time, the comm network expansion is still going strong--albeit it at a slightly reduced rate. Yes, there was a midterm correction in semis...an overcorrection that does not jive with the future demand picture. But things have overcorrected as if a semi recession is on the horizon. This does not jive with the recent Intel nor SIA assurance...nor the other 2001 demand factors. Re: KLIC (a semi fab company) sales reductions