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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (6109)	6/30/1998 7:23:00 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 10921

Brian, Korea Inc is deep in debt. The IMF will probably frown on any "rob Peter to pay Paul" type financing schemes. Having said that, I think they may have other source of funds. This is a pure guess but I think it is most logical for stronger US companies to step up to the plate. As an example, DELL can buy or JV with Samsung, using the cash to buy themselves a future supply. The chip prices will stabilize one of these years. Having a reliable source may not be a bad idea, especially when you can pick it up at fire sale prices. By the way, did anyone see this article the other day? Ramsey TOKYO, JAPAN, 1998 JUN 25 (NB) -- By Martyn Williams, Newsbytes. Motorola Inc. [NYSE:MOT] is planning to spend US$1.5 billion to expand a semiconductor plant in Tianjin, northern China, according to China's official Xinhua news agency. The report, yet to be confirmed by Motorola, quoted Pinyong Lai, president of Motorola China Electronics Ltd, as saying the firm will spend the money over the next two and a half years to increase production of semiconductors for telecommunications and other applications. Xinhua said the figure will take Motorola's total investment in China to $2.5 billion, the same figure as was announced late last year, although the report also said it was new investment.

To: Proud_Infidel who wrote (6109)	6/30/1998 7:53:00 PM
From: Joseph Beltran	Read Replies (2) \| Respond to of 10921

Brian, I agree with your statement that a turnaround will eventually come but I don't see how s.k. can find the $$$ to make any significant capital purchases in the near term. I just got through reading about a dozen current articles from the korea times and things appear to be getting worse, not better. as far as I can tell american companies with cash or borrowing power are in a position to destroy the s.k. competition if the time was appropriate to upgrade to cutting edge manufacturing technology. s.k. chip companies are up the proverbial river without a paddle. they are heavily subsidized companies and are losing $$$ on their manufacturing operations. no wonder they are announcing production cutbacks. it'll be interesting to see if their competitors let them off the hook. regards