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

To: Proud_Infidel who wrote (7011)	8/29/2003 11:39:45 AM
From: Kirk ©	Read Replies (1) \| Respond to of 25522

That article, just skimming, tells me that the smaller companies will have to merge and eliminate laywers of over paid managers so they can then afford to buy fabs themselves and compete with IBM, Sony, Intel, etc. By having a consortium to build chips, it means that you have many chefs (CEOs) in charge of the kitchen. I'll vote for a single chef restaurant any day over a "Planet Hollywood" of over paid CEOs. It will be interesting to see how it plays out. I just betcha we see the model so many are abandoning come back by 2008 as folks who want to compete with IBM and Intel will need better control of what is produced in fabs. The only way this won't be an issue is if there is so much extra fab capacity that they can dictate what gets built. From what I am seeing now, it seems fabs like TSMC are not buying to expand until they have orders. This can be far too late to meet fast moving markets. If anything we've learnd the past 5 yrs is CEO's are most interested in their own bank accounts. As such, they will convince themselves there is a workable business model for them that leaves them in charge and they will make pronouncements to the public to tell us why.