Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (4763)	1/6/2003 9:05:22 AM
From: robert b furman	Read Replies (2) \| Respond to of 25522

Good Morning Jacob, I think you are correct. If I'm not mistaken several years back The Senate passed a law,which allowed semi equipment to be depreciated over 36 months. When business is good and profits run this depreciation is a nice cashless expense. When excess capacity occurs - the advantage goes to the leaders in innovation as they achieved full depreciation and can then cut prices to gain market share.For those who have not yet depreciated their laggard investments - well they bleed as they dip below true cost to meet the price competition. Intel is a classic example of pouring the pain out to AMD.Poor AMD is still attempting to transition to the .13 micron manufacturing as Intel finished last year and they begin 90 nanometer pilots. After leapfrogging several generations of efficiency - it will be margin maintenance as the competition bleeds. Brutal business - but leadership has its advantages always. Bob