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To: ild who wrote (135338)	11/20/2001 6:27:12 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 436258

ild - ...KT, what amazes me is how they (ADI,MXIM etc..) are able to maintain their margins. With existing capacity excess I'd expect their prices to collapse. Analog capacity is an order of magnitude less capital intensive than digital, and becomes obsolete very, very slowly. Also, competitive price pressures are minimal as 80 to 95% of products are proprietary, as well as aimed at a diverse set of end markets. Since a large part of the costs are variable, revenue declines can be dealt with fairly effectively by a mix of temporary shutdowns and layoffs. Regards, Don