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

To: Proud_Infidel who wrote (16923)	12/21/2005 3:46:48 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Re: “With equipment costs increasing an estimated 10 percent for each new technology node, manufacturers will manage investments in new technology very carefully.” And yet it seems that capex as a % of semiconductor revenue has never been lower for such an extended period.

To: Proud_Infidel who wrote (16923)	12/21/2005 4:36:28 PM
From: etchmeister	Read Replies (1) \| Respond to of 25522

Rinnen said Gartner expects spending to rise in the first half of 2006, I don't like the way he uses the term "spending"; to me it looks as it applies to bookings as well as to revenue (billings) - comments? By the second half of the year, the market experienced a turnaround in orders, especially in the back-end segments, according to Gartner (Stamford, Conn.). Gartner's forecast calls for the strongest growth to come in the automated test equipment (ATE) segment, which is forecasted to grow by 29 percent after declining by 21 percent in 2005. Many key ATE supplier saw revenue drop significantly during the first half of 2005, Gartner said, but ATE spending picked up in the second half of the year. Manufacturing leadtime is probably another factor that impact on how much time it takes to transform a booking into billings; my guess leadtime for a bonder is probably short compared to more complex frontend tools.