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To: StanX Long who wrote (58878)	1/16/2002 12:48:53 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

Wednesday January 16, 11:49 AM Tokyo stocks mixed at midday as banks gain on Daiei By Risa Maeda sg.biz.yahoo.com TOKYO (Reuters) - Tokyo stocks were narrowly mixed at midday on Wednesday, with steep falls in tech issues due to a shockwave from U.S. chip giant Intel Corp (Singapore: INTC.SI - news)'s plan to cut capital spending balancing with higher bank shares. The tech-sensitive Nikkei average was down 28.30 points or 0.28 percent at 10,179.75, extending its losing streak into a sixth day. But the capital-weighted TOPIX index of all first-section issues gained 4.82 points or 0.49 percent to 985.14, quickly recovering from a morning low of 977.16. That was below the post-bubble closing low of 980.11 marked in October 1998. "Banks were higher as a solution to the Daiei issue seems to be looming," said Kazunori Jinnai, general manager of the equity department at Daiwa Securities SMBC. Mizuho Holdings Inc <8305> and other top banks gained after the Nihon Keizai Shimbun newspaper reported that Daiei Inc <8263> and its three biggest creditor banks were set to agree on a 400 billion yen ($3 billion) assistance plan later this week. Caution ahead of the end of the Bank of Japan's (BOJ) policy-setting meeting later in the day and technicals, which suggest a short-term rebound after the previous five days of falls, also underpinned market sentiment, analysts said.

To: StanX Long who wrote (58878)	1/16/2002 1:05:08 AM
From: robert b furman	Read Replies (2) \| Respond to of 70976

Hi Stan, Barrett was on CNBC after hours. He said that 300mm yields twice as many chips as 200mm. When queried about Capex reduction he said. 5.4 million in 02 will buy us as much capacity as 7.3 bought us in 01.His reference was again to the increased yields that 300mm offered. A bit ironic as Morgan always said 300 mm would be the driving factor for growth in equipment.In the beginning ,and Intel is the first production run 300mm line,300mm results in less $ of equipment orders. With Intel not really being forced by AMD in the high frequency chips offerings,they should benefit with better margins - but no strong pressure to produce more (initially at least). When/if demand grows and competition reduces price, Intel can play the game Micron just did with Hynix. I doubt they (Intel)would.Sooner or later AMD has to get nervous as 300mm yields apply to celeron and lower frequecy processors. Somewhere in that transition, all chip makers must prepare for price competition based on 300mm efficiencies. The degree to which the competition worries about Intel's lead,will determine the "overall growth of the equipment sector". If product cycles life is any indication - it can't be too far behind. Perhaps the only winners of this transition is the backend equipment manufacturers, as the unit count still requires a certain quantity of bonders,handlers and testers. I may be dreaming ,but didn't Intel trade down in afterhours last quarter, and recover in the premarket hours. I think I remember CNBC saying the analysts had the night to pour over the numbers and now think it's a good story.Of course that was at a stock price below current levels. Bob