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To: maceng2 who wrote (170986)	6/7/2002 7:00:35 AM
From: Earlie	Respond to of 436258

Pearly: Excess capacity is an understatement for the semis. And as both of us have been pointing out for many moons, it is a game where the capital and start-up expenses are so extreme that even in a good market, margins can be obtained only through around the clock production and a never-ending effort to increase yield. In the current glut, most plants can't even come close to covering their interest costs, never mind total cost-to-produce. Best, Earlie It boggles my mind that so many enthusiastic investors in the tech sector are unaware of just how ugly the current situation is.