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

To: Gottfried who wrote (14970)	5/14/2005 5:39:56 PM
From: Big Bucks	Read Replies (1) \| Respond to of 25522

G- The US chip and equipment industry is damned if they do and damned if they don't. As Greenspan would say a "conundrum". If the loan is approved the investment will be used to compete directly on the world market against US chip mfg's, further pressuring future chip ASP's. Short term, AMAT and other US equip mfg's could reap a windfall, but over the long term such a large sale could negatively affect sales from US chip companies who might have difficulty competing with the reduced cost structure of government subsidized Chinese fabs. The inherent risks include loss of significant equipment sales and business at US equipment companies and providing sales to foreign equip companies, or the chance that SMIC might default on the loans provided by the US while still manufacturing chips and still competing against US companies interests...a lose-lose proposition for US interests. On the other hand, perhaps the US government will get off its butt and subsidize US technology/chip companies to help level the international playing field. This would be my preference because it would stimulate additional US technological investment, US jobs, industry growth and competitive advantage. I'd rather see the US use those loans for US based investment opportunities. BB