Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: davesd who wrote (10229)	11/1/1997 10:58:00 PM
From: akidron	Read Replies (1) \| Respond to of 70976

while what you say is true it describes a set of circumstances that I don't beleive exist. Fabs are making money, some of them a great deal - Philips, Thompson, Siemens and in fact most of the asian ops. but as their product becomes more and more comoditized their margins are decreasing (you can get all of the aboves most recent cash flow statements on Yahoo.)... the question therefore is whether or not their margins will decrease to the point that they become cash flow negative. there is no evidence at all that this has happened except and one or two isolated MU like instances, and even if this were to happen it would not tell us the whole picture as in some regions (example Eastern Europe) govenment is picking up 25-50% of the cost of a new Fab.