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

To: advocatedevil who wrote (45450)	4/16/2001 10:54:24 AM
From: Ian@SI	Read Replies (4) \| Respond to of 70976

So, is Intel going to stand firm with their $7.5 billion capex plans when the announce earnings this week? This is really the same issue that you raised in post #45447 on price pressures. This is simply a bearish way to state Moore's law. Yes prices get cut in half every 18 months (per bit or per transistor). This has been happening since Moses brought the first 10 bits of information down from Mount Sinai. Moore's law will remain valid as long as chip usage and uses proliferate. To keep cutting price / bit in half, the chip makers have to keep buying the latest and greatest productivity improvement tools from AMAT and peers. I don't see this trend ending any time soon. And yes, INTC will continue to invest in new technology so long as it chooses to stay in the chipmaking business. Ian.