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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: LemurHouse who wrote (9186)	10/22/1997 4:07:00 PM
From: Tito L. Nisperos Jr.	Read Replies (1) \| Respond to of 70976

Positive Outlook for PC makers, CHIP makers and also AMAT, over the next 4-5 quarters---outlined by Michael Murphy:--- biz.yahoo.com Customized PCs for industry and $500 PCs for the home,---are we not seeing the CHIP market expanding?!...

To: LemurHouse who wrote (9186)	10/22/1997 4:08:00 PM
From: davesd	Read Replies (2) \| Respond to of 70976

I do not have any specific numbers...but when chips prices keep droping more than expected and companies in Asia keep giving their employees weeks off here and there, you have to wonder. DRAM is the biggest user of cap equipment.....DRAM prices are dropping like a rock....this is a sign of over capacity. In 1994/95 when there was sufficient capacity, DRAM was priced like gold....at this point the price is at production cost. Flash is another area that INTC said that prices were weak, I'm sure it was due to over supply which indicates plenty of capacity. Don't get me wrong, if everyone stopped expanding today....I'm sure we would have capacity problems soon, but remember, most of the stuff that AMAT and others sold the last two quarters is probably not even in production yet, so that's still to come. With what is out there today and with purchases flat for the next few quarters, I think there is going to be enough capacity to get thru the 200/300mm transition. dave