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

To: sixty2nds who wrote (28988)	3/2/2006 8:32:05 AM
From: sixty2nds	Read Replies (1) \| Respond to of 95757

07:50 WFR MEMC Elec: German press reports potential new WFR competitor; near-term impact limited - Piper Jaffray (34.45 ) Piper Jaffray notes that German financial press is reporting that Siltronic, an I.C. wafer making unit of German chemical co (and polysilicon maker) Wacker, is in preliminary talks for a wafer plant J.V. with Samsung. They say they location is reported as Singapore, and that Samsung has confirmed that they are in preliminary-stage talks, but nothing has been finalized. They believe the J.V. would become a competitor to WFR in supplying wafers to Asian-based chip companies (like Samsung), foundries, and solar companies. Firm notes that Samsung is a top customer for WFR, and they suspect this is Samsung's response to wafer companies' attempt to raise wafer ASPs. They believe shares of WFR may see profit taking on the news, as this would be another competitor in the commodity semi wafer business. As the J.V. negotiations are still preliminary and any near-term impact will be limited, they would view share weakness as an attractive opportunity to accumulate positions.