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To: yard_man who wrote (170943)	6/7/2002 5:59:47 AM
From: maceng2	Respond to of 436258

Hi tippet, You seem to have a clear understanding. Like in the case of the Turbine manufacturing. There was a pulse of demand. The problem is there is a massive capacity in the semis. If all the fab are at "80% utilization", and the capacity of just DRAM is one million wafer starts per month, with 350+ die per wafer, any "demand" is going to get wiped out in an instant. The only choice semi CEO's have is cut margin and underprice the competition. To to that you have to run more wafers to cover fixed costs. Trouble is... the other CEO's think of the same idea... Key issues to watch are ASP and profit. Watch for any fluffing on those issues. Ignore all other figures. Many companies are skilled in preserving ASP by various methods. ASP = "Average Selling Price" of the chips sold.