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

To: Proud_Infidel who wrote (11117)	8/5/2004 3:36:37 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Businessmen Plan China Flash Fab By David Manners -- Electronics Weekly, 8/5/2004 A group of South Korean businessmen has floated the idea of building a flash fab in China following the $1.8 billion flotation of Chinese foundry SMIC and the surging NAND flash market. The group, called LMNT, is looking to raise $1.4 billion to build the fab in an industrial park near Beijing and start production next year. "Anyone wanting to get into the flash business has to be prepared for an even bumpier ride than the DRAM business," said Joe D'Elia, a VP at iSuppli. "NAND flash pricing has taken some very severe hits and our expectation is that it will drop a heck of a lot more." To compete in NAND flash, LMNT will need cutting edge process technology which China is forbidden to have under the Wasernau Agreement, while a new company in the flash market would need myriad licenses to use flash IP. Furthermore LMNT would be competing against companies that can run both DRAM and flash down the same line and switch wafers to take account of market conditions.

To: Proud_Infidel who wrote (11117)	8/5/2004 9:17:34 PM
From: BMcV	Read Replies (1) \| Respond to of 25522

>>What such high growth figures must also indicate is that can surely be no more upside.<< I've said it before, but I cannot understand why there is this misconception in the popular media that peaking growth rates means a growth peak. Everyone should realize (one would think) that we are coming off an unusually prolonged decline, so that just to return to normalized growth rates of 10-15% would require a period of abnormally high growth. Now, if we are back to trend, why can't normal growth rates be acceptable and not seen as a "lack of upside"? Given the profitability of these companies at current revenue levels, let them stay here forever, as far as I'm concerned! Growth or no growth!