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

To: Sam Citron who wrote (7067)	9/7/2003 12:56:37 AM
From: Cary Salsberg	Read Replies (1) \| Respond to of 25522

RE: "If INTC possessed such a power, you would simply buy INTC and be done with it." Again, things are not that simple. PMCS and AMCC have revenues that are just a drop in the bucket to INTC. INTC may replace them and still be primarily dependent on PC and server processors in a increasingly more competitive processor environment. RE: "...most markets tend to resemble commodities as they mature and products are standardized to match consumer preferences. The key is innovation and product differentiation." I agree. An important factor in "innovation and product differentiation" is the chip fabrication process. INTC accomplishes its goal by being the first at each point on the roadmap. Others use more exotic materials and processes than CMOS silicon. Fabless digital chip makers must depend on the foundries' processes, so they are less likely to achieve "innovation and product differentiation" through fabrication. I hope Lizzie presents us with an analysis of the chip function, type (digital, analog, mixed), and fabrication method for each of PMCS and AMCC chips with an estimate of competitive advantages and barriers to entry. This is a tall order if one expects to invest only pocket change in these companies.