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

To: Jerome who wrote (44497)	3/25/2001 11:17:42 AM
From: Sam Citron	Read Replies (1) \| Respond to of 70976

Jerome RE: ASP The reason that I think it may be valuable to pursue ASP as a leading indicator is that Katherine Derbyshire thinks it's the best one out there for determining semiconductor equipment sales. what would be the common chip[?] There is no common chip. If you looked at the ASP of any given chip it would decline over time in accordance with Moore's Law. Instead ASP captures the average selling price of ALL CHIPS that are produced, i.e. total chip revenue divided by total unit volume. The trend is rising over time to reflect higher average prices for rising chip functionality accomplished via shrinking geometries and greater densities. My theory is that in years where ASPs rise sharply it may send a message to semi manufacturers that the high end of the line is outselling the low end, hence the signal to invest in more advanced equipment. Sam