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To: patrick tang who wrote (2550)	2/10/1998 4:26:00 PM
From: DJBEINO	Respond to of 9582

From AMAT earning release: New orders for the first fiscal quarter of 1998 fell short of our initial expectations," said James C. Morgan, chairman and chief executive officer. "The continued weakness in DRAM prices, driven by excess capacity, combined with recent financing difficulties in Asia, are causing many of our DRAM customers to reevaluate their capital spending plans. In the first quarter, for example, a key Korean customer delayed a major investment in a new DRAM site in the United Kingdom. Although we remain confident about the long-term prospects for Korea and Japan, there is a high degree of uncertainty regarding the near-term economic health of these regions and the related effect on the demand for semiconductor capital equipment. As a result, we have become more cautious at this time and expect lower new orders and less favorable operating results than we originally anticipated as we entered fiscal 1998,"

To: patrick tang who wrote (2550)	2/10/1998 4:59:00 PM
From: Bert Kuo	Read Replies (1) \| Respond to of 9582

I think you are being too general or missing the big picture. If the US refuses to help korea and/or the rest of asia, it could plunge their economy even worse than it is, and consequently hurt many US companies who are exposed. That hurts everyone. What you propose may help shore up the local DRAM prices, but that doesn't help if the economy hits the wall due to the sudden disappearance of our pacific rim business. Of course I don't think that it would be fair to allow companies such as micron or ALSC to be crushed by continued asian undercutting, either. The economic aid package should go through, but not without tight restrictions/provisions to protect american competitors in this regard. If you want to write a congressman, tell them to pass it, but not without reading it very carefully first to make sure that they can't just sell below cost like they have been again. I'm no economist/guru/financial-know-all but I just think that this issue deserves to be viewed from more than one angle.