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.

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

To: Proud_Infidel who wrote (48225)	6/20/2001 8:57:00 AM
From: Proud_Infidel	Respond to of 70976

INFRASTRUCTURE Sees Semiconductor Manufacturing Industry "Sick - Not Terminally Ill" In four recent presentations, INFRASTRUCTURE, the leading independent research organization covering the investor's view of the semiconductor manufacturing industry, commented that the semiconductor manufacturing industry is "Sick - Not Terminally Ill," and has good prospects for recovery. Carl Johnson, INFRASTRUCTURE's President, delivered three luncheon talks - in Austin, Texas on June 5, Dallas on June 12, and Minneapolis, Minn. on June 14. Ron Leckie, INFRASTRUCTURE's CEO, delivered the same talk in Portland, Ore. on June 6 in an after-dinner industry forecast presentation at the SEMI Pacific Northwest Mid-Year Outlook Dinner Forum. These events were all organized by the industry trade association, SEMI (Semiconductor Equipment and Materials International), with attendance at the events ranging from 75 to over 200 industry professionals. Leckie and Johnson's presentation was developed along the slightly humorous theme, "Rx for the Semiconductor Industry's Health," drawing analogies between the current industry recession and periodic bouts of sickness that hit the industry. As Leckie noted, "The semiconductor manufacturing industry is clearly sick, but this is not a terminal illness! It will recover, given a combination of time and careful actions." Johnson said, "This particular cycle has hit harder and faster than anyone anticipated. It was exacerbated in 2000 by excessive growth that set the industry up for this precipitous drop." He added, "We were very fortunate to position our Model Portfolio with an inordinately large cash position early in 2000. This strategy has helped us weather the storm." Johnson commented that, "Despite three industry down-cycles, our portfolio has enjoyed a 30 percent compound annual growth rate since inception at the end of 1993." Leckie commented, "In my 30-year tenure, I have experienced at least six full cycles of this growth-cyclic industry. These periods are often a welcome relief for the smart companies, who can get in shape for the next up-turn and emerge much healthier, gaining market share in the process." Examples of top companies that emerged stronger from the last downturn included Applied Materials and Teradyne (NYSE:TER). He added, "This type of cycle separates the leaders from the pack." Many of the thoughts and analysis presented at the talks have been written up in the INFRASTRUCTURE monthly newsletter. The last (May) issue was a double feature with commentary on Advanced Micro Devices, Chartered Semiconductor, Infineon, Intel Corp., LSI Logic, Motorola, ST Microelectronics and Samsung.