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

To: davesd who wrote (13729)	12/21/1997 8:12:00 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 70976

Re: maybe DRAM needs an OPEC: Sooooo......Maybe the Korean and Japanese government mandarins (who allocate capital in their countries, and have done such a fine job), should get together with the European technocrats, and hire a Saudi prince (on loan from OPEC) to coordinate industrial policy for the global semi industry. 5-year plans, endless commissions making adjustments to preserve social harmony, etc. Noone can ever be fired for any reason. No company is ever allowed to go bankrupt, no matter how much money they lose or how high their debts. That would be a truly evil outcome.

To: davesd who wrote (13729)	12/22/1997
From: Ian@SI	Read Replies (1) \| Respond to of 70976

Dave, Do you believe that Demand is completely inelastic? Do you further believe that as prices go down, new applications will not become viable? ... that all possible uses for chips have already been invented? that nobody would upgrade their existing systems for improved function at lower costs? Sure there may have been a glut last month, there may even be a glut today. However, this too will pass. Perhaps after a couple more DRAM makers decide to exit the market, perhaps not. Over time, it's likely we'll continue to see fewer companies with more expensive fabs making more chips and most of them won't be making more money; but the equipment makers on the leading edge will. You're entitled to your view. There's not a hope in a hot place I'll subscribe to it. Ian.