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

To: Big Bucks who wrote (7732)	10/24/2003 2:36:07 PM
From: rhering	Read Replies (1) \| Respond to of 25522

Big Bucks, You could very well be right. It all depends on the volume to offset the annual depreciation for the fixed cost investment. I just don't think guys are building 300MM FABs to loose money. From what I've heard, there is a 30% cost advantage. I'm sure that is modelled at a given FAB capacity. This is why only the big guys, foundries, IBM, Intel etc, have an easier time with 300MM. If you are making a commodity and have the lower unit costs you win. My guess is a 200MM FAB can be successful over time if it stays away from high volume products being produced in 300MM plants. Regards Roger