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Technology Stocks : Dupont Photomasks (DPMI) -- Ignore unavailable to you. Want to Upgrade?

To: DJ Clancey who wrote (166)	2/22/1998 10:19:00 AM
From: jeffbas	Respond to of 955

DJ, I had similar type issues when I noticed the flat SEQUENTIAL quarter sales. I could not figure out an explanation. The only thing I thought of was the possibility that one ASIC replaced several simple chips. You gain more masks on the ASIC but lose all the ones on the simple chips. I raised the issue here in several posts without getting very far. Since I raised that issue, I think the rising dollar is also a factor since Photronics has shown better sales performance and has a larger proportion of its business in the US.

To: DJ Clancey who wrote (166)	2/22/1998 11:18:00 AM
From: shane forbes	Read Replies (3) \| Respond to of 955

Here's the way I see it: Unit demand for masks increase because: (a) generally increasing complexity means more steps involved in manufacturing process (guessing - extending argument used for MPU's) (b) consumer electronics digital revolution just getting going. That means std. cells' demand explodes that makes the number of designs explode. Also this moves some std. cells designs into the hundreds of thousands or millions of chips per run category. (c) Networking needs more and more complex ASICs. (d) Ditto for storage. Price per mask increases because: (a) of complexity ---- Putting the two together: Sales of masks = Unit Demand for chips designs(increases)* Number of masks per chip design (increases)* Price per mask (increases) No decreases (I'm paying no attention to low end or lesser complexity designs - the future is more complex designs and DPMI is highlighting those in their earnings releases.) When the sales function is a function of 3 variables each of which is increasing (and some rapidly) you've got a very fast increasing sales function (ignoring currency effects of course). Therefore DPMI is in a stellar position here.

To: DJ Clancey who wrote (166)	2/23/1998 11:29:00 AM
From: Duane L. Olson	Respond to of 955

DJ.. You are right on top of it! And you are absolutely correct.. ASICs are more complex than the old commodity DRAM, and require more masks. The statement made (by somebody) that if more functions can be put on a single chip, wouldn't there be fewer chips and lower mask requirements?... While containing an element of truth, the fact is, Fabs are being built as fast as they can be put up because both NUMBERS and COMPLEXITY are skyrocketing... It is estimated that just the DEFICIENCY in capital to build new Fabs in Korea is $7.7 Billion...while every major U.S. chipmaker is bringing new plant on stream... the NUMBERS of COMPLEX chips are on rise... and DPMI is at the LEAD in capability to deal with those more compex chips.. At the Gresham plant (oregon) they are installing, UP FRONT, the capability to deal with line widths down to .13 micron, even though the requirements are just making the move to .25 micron. Can't see that you are missing much DJ...sounds like you know what's going on!! Sorry about the heavy posting...there seemed to be a need for a small dose of FACTS on the thread, to liven up the discussions <gg> The Saintly One.. T