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

To: Clarksterh who wrote (15056)	1/26/1998 4:26:00 PM
From: Teri Skogerboe	Read Replies (1) \| Respond to of 70976

Clark, Re: "Pretty bad" ?? This does not look "pretty bad" to me. Message 3240944 Re: "And, no one had to upgrade their manufacturing equipment since they had purchased the equipment in late '95 or early '96. It wasn't yet obsolete...." I disagree! They may not have "had" to, but they did, a number of chipmakers upgraded their equipment last year. Teri

To: Clarksterh who wrote (15056)	1/26/1998 11:38:00 PM
From: Ali Husain	Read Replies (3) \| Respond to of 70976

Can anyone post the exact date of the quarterly report from AMAT ?

To: Clarksterh who wrote (15056)	1/27/1998 4:31:00 PM
From: Teri Skogerboe	Read Replies (1) \| Respond to of 70976

Clark, Re: "First, if it can be shown that there is excess capacity in the logic area, then...." I recall 2 firms in the logic business (at least) who have talked in the past few months about not needing new capacity. Intel stated something along these lines in their CC, ~ 2 CC's ago. I did not copy links for INTC's comments. The other company was LSI Logic. Please see below for the LSI comments. regards, Teri To: +Duane L. Olson (7683 ) From: +Howard S. Friday, Nov 7 1997 9:07AM EST Reply # of 9186 From Briefing ... 08:52 ET Chip-Equipment Makers: Sector likely to be a highlight after DMG informed clients that LSI Logic is cutting capital expenditures by 50%. At present, sector stks doing fine in pre-market. Most major names indicated about 1 to 1 1/4 pts lower. Message 2664262 --------- To: +E. Graphs (7692 ) From: +RFF Friday, Nov 7 1997 2:58PM EST Reply # of 9186 I don't think the reduction in capital expenditures has anything to do with financial distress or poor future prospects. It has to do with the fact that LSI doesn't need to improve or expand its capacity in the short-run - so why incur the costs. Recent discussion have focused on the fact that silicon advancements have outstripped design capabilities - no one can take advantage of LSI's millions of gates. I think its great that LSI may be shifting from a "make the most advanced chips" mentality to a "make the most profitable chip" - hinted at in the interview with Corrigan when he said he wanted high-volume chips. LSI currently has excess capacity so delaying capital expenditures isn't going to impact the company's ability to expand sales. With all the economic problems occuring around the world, who knows how strong demand will be over the next year. I hope everyone delays some capital expenditures so that we can get some expansion in margins next year. Just an opinion. RFF Message 2667922