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

To: Big Bucks who wrote (18041)	3/21/1998 2:04:00 PM
From: akidron	Respond to of 70976

buxxx i saw your post on the way out... i guess what i'm trying to get to is whether or not intel is, for the first time going to see real competition in large areas of its business, and whether or not this will reduce its margins, which are extraordinary.... (i think that we agree that this is likely)... and if so surely this must have the effect in the short to medium term of decreasing margins of the semi-equips and forcing consolidation to increase the prod. of their capital employed.... which by co-incidence gets me to me previously stated position, that we will know when stock prices have reached a bottom when this consolidation arrives.... excuse the grammer gotta, gotta run.

To: Big Bucks who wrote (18041)	3/21/1998 3:24:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

BB, I have to do more homework on this, but did INTC elect to license it's Slot 1 technology? That was going to prove to be an advantage over AMD and thus could have kept competitors from nibbling away its market, especially in the low end arena. I have not heard anything regarding a divorce between INTC/HP, but would be surprised as the marriage is still in its "honeymoon" stage<GGG> BK

To: Big Bucks who wrote (18041)	3/24/1998 1:23:00 PM
From: Paul V.	Respond to of 70976

Big Bucks, >BK, Re:<The costs involved in getting one of these to market is too large for INTC to bear alone. And if they cannot do it with the $9B+ cash hoard, then how in he** is AMD going to do it?> INTC elected to co-develop the Merced with HP because HP has superior CPU design technology from years of experience with their workstation products. This apparently was an attempt to merge technology designs to shorten the "design cycle" time, which cuts costs and time to market. I think HP has years of experience with RISC processing design and fabrication, thus the "marriage". I had heard a rumor (un-substantiated) that due to corporate "cultural" differences/approaches that the marriage had become a divorce. Anyone heard of this?? Care to comment. As far as AMD, they will continue to underprice INTC's chips and nibble away at market share. Once they get their production problems worked out they will be profitable in the $500-2000 computer arena. Their next product is targeted for release late this year if I recall correctly and will be compatible with "slot 1" architecture motherboards, and have built in multi-application functionality like 3d video, sound, etc, much like Cyrix is doing.< This is exactly the reason I am in AMAT. IMO, regardless as to how the the SEMI's compete they will still be required to have equipment to make their semiconductors. With the increasing demand for smaller and more powerful semiconductors it seems to me that AMAT will continue to grow tremendously during the next decade. What do you perceive will be the new growth areas which will add to AMAT's growth? Regards, Paul V.