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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (12928)	1/5/2004 5:50:19 PM
From: Donald Wennerstrom	Read Replies (1) \| Respond to of 95561

<<Chip makers are hesitant to add capacity until plant utilization levels rise above 95 percent, and Merrill Lynch does not expect that to occur until late 2004 or early 2005. "Of course, the most important aspect is utilization by technology level, which is already at 95 percent for the leading edge," said analyst Osha. "Advanced technology accounts for over 40 percent of the installed base now [and] the high utilization rate . . . explains the accelerating demand for semiconductor equipment.">> I don't think this paragraph knows what it is trying to say;-) Sounds to me like the need for semi-equiqment is needed now rather than waiting further until "late 2004 or early 2005". <<Although more capacity, especially of 300-mm wafers, will be added in the new year, capital spending will remain subdued, analysts said. A few chip suppliers, including Samsung Electronics and foundries like TSMC and UMC, are expected to sharply raise their capital expenditures in 2004, but the traditional big spenders are staying out of the fray.>> That's an oxymoron if I ever heard one. How do you add more capacity in the coming year without adding capital equipment when it is at the 300mm level? Voodoo, that's what it is, Voodoo. I wonder if that is anything like being in deep do-do?;-) Don