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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (69131)	1/27/2002 2:55:53 AM
From: Petz	Respond to of 275872

cj, if you have a joint venture like we're guessing, I wonder what the recurring costs are. Since the AMD "section" of the fab will probably still be mostly manned by UMC employees, AMD would presumably have to reimburse for their salaries, buy raw materials for the production process, and pay a percentage of overhead. But doing it via a joint venture should be much less expensive in the long run than a straight foundry contract. Perhaps UMC still would want a per-piece royalty for IP like process technology. We will probably never hear the details of whatever emerges, until long after the agreement, like the Dresden fab agreements. Petz

To: combjelly who wrote (69131)	1/27/2002 3:43:19 AM
From: milo_morai	Read Replies (1) \| Respond to of 275872

Blank wafer silicon market consolidating; a new No. 2 Is market consolidation in the blank silicon wafer market a good thing for the chip industry? The vendors say yes, but I dunno. In any event, it's happening. The combination of third-ranked silicon supplier Sumitomo Metal Industries and fourth-ranked Mitsubishi Materials will create the world's No. 2 supplier with nearly 25% of the blank silicon business. Japan's Shin-Etsu Handotai Co. will remain the largest silicon wafer supplier with a lead of several percentage points, according to industry estimates. The new Tokyo company, called Sumco for Sumitomo Mitsubishi Silicon, will begin operations Febr. 1st. The merger came a couple of years after the two vendors formed a joint venture to develop and make 300-mm silicon wafers. The merger is part of a consolidation now going on with blank wafer suppliers, which were hit hard by two severe chip downturns since the late '90s. The global blank silicon wafer market is estimated to run about $5.2 billion worldwide, still below the $6 billion racked up in 1997. This year these are expected to grow 9.5% to $5.7 billion, according to the SEMI trade group. "This merger is a classic case of the sum being greater than the parts," brags Chet Brauch, CEO of Mitsubishi Silicon America, U.S.-based arm of Mitsubishi's silicon operations. "We can leverage our size and strength in all areas, from advancing the technology to anticipating our customers' global product needs," he maintains. "Customers will have more choice and greater flexibility than they have ever experienced from any other wafer supplier," adds Kaz Nagano, president of Sumco USA. Spoken like a true salesman. Full article found here. siliconstrategies.com FWIW SEH America (Shin-Etsu Handotai ) in Vancouver supplies allot of INTC's wafers. M.