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

To: ed who wrote (21693)	7/13/1998 2:56:00 AM
From: Big Bucks	Read Replies (2) \| Respond to of 70976

Ed, Despite what you say there is tremendous overcapacity in various areas of the chip industry, DRAM, SRAM, CPU's,E2Prom,Flash, etc. Yes there are some very strong areas but these will soon be over produced as more companies move into that territory. We have beat this argument to death since Oct '97, and have seen many articles and countless postings of chip business conditions. The industry is in a funk, there is too much production capacity and yield enhancing productivity available at this time. The world can only absorb so much chip supply. Right now the demand is far below the capacity of manufacturers to produce. Will it recover? Absolutely, just not in the near future. I work in the industry, believe me things are definitely as bad as they appear, thus the earnings warnings and general malaise occurring right now. BB