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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: John Chalker who wrote (4577)	1/24/1998 7:21:00 PM
From: shane forbes	Read Replies (1) \| Respond to of 10921

Chalks I don't disagree with anything you say. But what's the connection with what I said? MPUs, analog chips and many others, especially high end chips, are not in this "overcapacity" situation. The argument about the strong wanting to crush the weak by going smaller and faster by spending to build better and better fabs is nothing new. But things can go wrong if you don't plan right. Korea is showing what happens when you try to outspend your rivals in 1995/1996 and memory prices don't oblige by going up. Now they have to face the music. On the other hand, INTC has shown (as you point out) how to play this game correctly. Also it does not hurt when you have a virtual monopoly. Unlike DRAM where you have a zillion big competitors chasing a pie that's not growing faster their combined capacity additions. Hence ASPs have suffered. INTC has much more pricing freedom. Goes to show how virtual monopolies are beneficial to the "big bully" and detrimental to everyone else.