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

To: Teri Skogerboe who wrote (15095)	1/27/1998 7:03:00 PM
From: Clarksterh	Read Replies (1) \| Respond to of 70976

Teri - I agree that there are definitely some companies in the logic area that have excess capacity, but that was probably true even in '94. There will always be some companies with excess capacity. What I would need to know would be the overall industry average. I keep hoping for some reliable industry-wide numbers (from Dataquest or VLSI presumably. As for your two examples - everything I have seen indicates that LSI does indeed have excess capacity, but I disagree about Intel. Intel has actually talked about spending as much money this year as last (although it might be just for technology upgrades). Two companies that are currently capacity limited or are talking about increasing spending for cap. equ. are Motorola and VLSI (a slightly smaller competitor to LSI). Note: The VLSI position is somewhat complicated, but suffice it to say that they are anticipating significantly increased unit volume and they are currently at around 90% of capacity. Clark