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

To: Gottfried who wrote (41575)	1/18/2001 9:11:23 AM
From: Ian@SI	Respond to of 70976

TSMC Selects Applied Materials' Black Diamond Low K Dielectric for Copper Chip Production in 200mm and 300mm FabsWorld's Largest Chip Foundry Achieves 8-Level Copper Dual Damascene with Black Diamond for 0.13 Micron Devices HSINCHU, Taiwan, Jan 18, 2001 (BUSINESS WIRE) -- Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest dedicated chip foundry, has Selects Applied Materials, Inc.'s (Nasdaq:AMAT) Black Diamond(TM) CVD (chemical vapor deposition) low K film for producing TSMC's latest high-performance 0.13 micron copper chips. TSMC is also working with Applied Materials to extend Black Diamond technology to its next-generation 0.10 micron devices that are currently in development. Applied Materials' Black Diamond process enables chipmakers to rapidly and cost-effectively incorporate a low K dielectric into their copper interconnect structures using conventional CVD equipment and silicon-based materials. With Black Diamond, customers can extend their existing systems and avoid costly proprietary chemicals typically needed by spin-on technologies. Dr. F. C. Tseng, president of TSMC, said, "An economical, production-worthy low K dielectric is one of the key requirements for realizing the potential of copper chip technology for increased speed and lower power consumption. Applied Materials' Black Diamond low K film meets this requirement. We are also confident in this product's extendibility to multiple generations of devices, including those that will be made in our 300mm fabs, which will begin volume production this year." Used in combination with copper's low electrical resistance, Applied Materials' Black Diamond technology offers a full range of K-values from 3.0 to 2.0. These advancements can create more powerful chips with large-scale improvements in speed and power consumption. TSMC deposits Black Diamond film using Applied Materials' CVD systems for both 200mm and 300mm wafers; additional Producer(R) systems are being shipped to TSMC in January, 2001 to expand copper chip production using Black Diamond. "Very few chipmakers in the world can match TSMC's combination of technical excellence and timely execution of advanced technologies while focusing on economic performance," noted Dr. Dan Maydan, president of Applied Materials. "We appreciate being able to work closely with TSMC, one of our most technically sophisticated customers, to commercialize Black Diamond for their extremely broad range of device types and sophisticated technology requirements." Dr. Shang-Yi Chiang, senior vice president of Research and Development at TSMC, said, "The Black Diamond technology has achieved several key milestones for us, including its use on every level for 8-level copper integration interconnects. We have seen an improvement in interconnect delay of more than 20 percent over FSG (fluorinated silicate glass), with good reliability. Black Diamond has demonstrated good thermal and mechanical properties, packaging reliability and cost, all of which contribute to its superior manufacturability compared to low K alternatives." For next-generation low K requirements, Applied Materials' Black Diamond film can continue to be used in combination with the company's BLOk(TM) barrier low K CVD film to further reduce the capacitance of the overall dielectric stack structure. Also available on the Producer system, the BLOk process can easily be integrated into manufacturing lines using proven hardware. "TSMC has proven their leadership once again by being the first company to demonstrate an 8-layer metal interconnect system using copper with a low K dielectric," said Dr. Farhad Moghadam, vice president and general manager of Applied Materials' Dielectric Systems and Modules Product Group. "We are pleased to have worked with TSMC on this milestone accomplishment and look forward to beginning our collaboration this month on next-generation low K requirements for 0.1 micron device technology at TSMC's R&D facility in Hsinchu for both 200mm and 300mm wafers." TSMC is the world's largest dedicated semiconductor foundry, providing the industry's leading process technology, library and IP options and other leading-edge foundry services. TSMC operates two six-inch wafer fabs and six eight-inch wafer fabs. The Company also has substantial capacity commitments at two joint ventures fabs (Vanguard and SSMC) and WaferTech. In 2000, TSMC produced the foundry industry's first 300mm customer wafers and began constructing two dedicated 300mm fabs. TSMC's corporate headquarters are in Hsin-Chu, Taiwan. More information about TSMC is available through the World Wide Web at www.tsmc.com

To: Gottfried who wrote (41575)	1/18/2001 12:14:05 PM
From: mitch-c	Read Replies (2) \| Respond to of 70976

I just got approval from Schwab to trade options, but am not sure whether buying call leaps is the right thing to do. In short: I'm uncertain. The past may not be a good guide and I don't know how to set a price target. Gottfried Congrats! I think we can make a few one-to-two year assumptions about the price movement, based on some longer horizon drivers. (Don't ask me about short-term ... I've proven my talent for stepping in it badly. <g>) Please forgive any imprecision in MBA-speak below - I'm a computer guy with engineer training, not a bean counter. Note I said price, not value. I think those decouple significantly at the extremes, and present the best opportunities for profit. Assumption 1) Recession is on the way, severity unknown. Generally, that's bad economic news - sets the climate. Assumption 2) Those who can will act to mitigate recession. That means Fed cuts and tax cuts. That's usually considered supportive. Reaction comes in two waves - an initial spike as the decision is made, and a long rolling swell as the effects are felt. We've seen the Fed spike just recently. Assumption 3) In a contracting business climate, some companies react by investing in projects with higher IRR's, with an associated risk increase. (AMAT always has emerged from pullbacks with better technologies and market share.) Therefore, AMAT's customers will begin to make large, risky investments as the recession clouds clear - both in anticipation of more business and to leverage a lower cost of capital. That translates to a slew of orders at a recession's tail end, but before it's declared over. Assumption (empirical observation) 4) AMAT's price reacts dramatically as orders flood in, not as shipments go out. (Thus the intense focus on BTB, and JS's belief that pure bookings are more representative than the ratio.) ======== So, where will we be in a year? How long will a macro recession (in contrast to the "usual" semi cycle) last? NVLS seems to think it's a six-month thing. INTC appears to be taking the approach outlined in #3 above. Foundries and DRAM makers seem to be in famine now, not feast. All this seems to point to us headed down before dramatically up - timeframe unknown. That's where options come in. What happens if AMAT's price doubles in a year? What's your best ROI on an option if that happens? Options are really lucrative during major moves (ref. Tito's stairwell). There are tools out there to tell you - including the WSC Best Gains page. Empirically, I'd pick one out-of-money about a third to a half between the current price and your expected target. That minimizes cost (denominator) while maximizing eventual value (numerator). With different underlying price targets (50%? 150%?) the "best gain" point shifts as well. Okay - now a concept I asked about before. The above ought to work for a downward move as well as an upward one. I can look back about six months ago, when I was making comments like "the easy money is gone" and "potentially $200," and wish I'd grabbed some (cheap) puts at 60% of close. On a long enough horizon, those would have gotten pretty valuable. (Jan 01 puts at 60 or 70, anyone?) I think I'll keep that in mind the next time I make euphoric predictions, and cover my exposed asset. <g> - Mitch