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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Yakov Lurye who wrote (13235)	1/28/1998 10:40:00 AM
From: Czechsinthemail	Read Replies (1) \| Respond to of 25960

Y, I agree with your view that Nikon is likely using Asia as a cover for its problems. Most of the DUV deployment announcements I've seen have been for ASMLF, SVGI and Canon machines. Since the Nikon announcement only covers the period through March, it doesn't give much forward visibility. Though there may be some short term weakness of Nikon orders for CYMI, my guess is that as Nikon's bugs are worked out, it will more aggressively push to regain market share. That should be good for CYMI. One other item is that CYMI's stock price has been severely hurt by Nikon problems having been attributed to CYMI. I think getting the smoke cleared around this should help CYMI stock.

To: Yakov Lurye who wrote (13235)	1/28/1998 11:18:00 AM
From: Tulvio Durand	Respond to of 25960

Lehman's recent (1/23/98) 'strong buy' report on ASMLF contains comments highly pertinent to Cymer's SEA business and long term DUV prospects. The more pertinent ones are excerpted here. (emphasis is mine). Tulvio Message 3260350 >>>>Samsung, ASML's largest customer in 1997 representing 20% of total revenues, and Hyundai, a new customer in 1997, desperately need the company's DUV machines to transition their existing 16Mbit DRAM lines to 64Mbit lines in order to remain competitive in the industry over the next several years. But the concern is how will they be able to pay for them? Samsung currently has the funds to pay for the machines and ASML is currently working with Hyundai on alternative financing arrangements. We believe that the company will be able to come to terms with these customers, however, the near-term timing could be of some concern.<<<<<<< >>>>recently upgraded Technology Roadmap published by the SIA (Semiconductor Industry Association) for the 1997-2012 timeframe, replacing its previous Roadmap introduced in 1994. The new Roadmap calls for linewidths to decrease from the current 0.25 micron to 0.18 micron in 1999, 0.15 micron in 2001 and eventually reach 0.05 micron by 2012. The Roadmap also states that die shrinks will continue to be the most important single factor in reducing semiconductor manufacturing costs. Moreover, feature sizes that have historically been reduced every 3 years, but beginning this year, they are projected to drop every 2 years through 2001. Furthermore, DUV lithography is expected to be able to get down to 0.10 micron linewidths. We believe photolithography equipment and ASML will continue to outperform the rest of the semiconductor equipment industry over the next several years as industry moves to 0.25 micron and below linewidths. Despite the fact that the timing of some shipments to Korea could be delayed due to the economic and currency crisis, we are still estimating strong growth in 1998-1999 (significantly outpacing the industry).<<<<<<<