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.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (39583)	2/21/2001 4:26:26 PM
From: FLSTF97	Read Replies (1) \| Respond to of 54805

AMAT, Cycle The volatility is multifaceted. Supply comes on line in big chunks. A $1.5 billion dollar fab may spit out 20,000 wafers (That could be 2,000,000 more high end microprocessors) per month. Almost everybody turns off the cap ex $ when things get tight and turn them back on again at about the same time. That means that in a particular 6 month period 10 or more these new fabs start outputting product when for the previous 6 months shortages abound. So chip demand chugs along at say 12% CAGR and supply catches up with huge standard deviation swings about that average. Foundaries produce many different parts for many different customers. It's a lot easier to spread the capacity around over 10,000 products amongst hundred of customers without saturating the demand. FATBOY