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Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant? -- Ignore unavailable to you. Want to Upgrade?

To: All Mtn Ski who wrote (3671)	8/3/1998 10:44:00 AM
From: Jonathan Edwards	Read Replies (2) \| Respond to of 4697

I will do so but it will have to wait until this evening when I'm home from work. If you'd like to do it sooner, please do.

To: All Mtn Ski who wrote (3671)	8/6/1998 4:45:00 AM
From: Jonathan Edwards	Read Replies (2) \| Respond to of 4697

WFR and SOI - my email and their response: My email: IBM today announced a breakthrough that will make commercial-scale production of silicon-on-wafer chips possible. (See chips.ibm.com I would appreciate it if you could answer the following questions concerning this matter: 1) What role (if any) did MEMC's SiBond JV play in this development? 2) Does SiBond currently supply SOI wafers to IBM? If not, does MEMC anticipate that SiBond will supply SOI wafers to IBM in the future? 3) Does MEMC or SiBond share rights to any of IBM's intellectual property that has enabled this development? WFR's response (my emphasis and commentary): IBM's announcement is significant in that it is "Big Name" recognition of SOI as a strategic material for future generations of devices with commercial applications. IBM's announcement is not a new technology discovery. The SIMOX technology has been researched for years by IBM and others. Also, IBM's announcement is not a significant breakthrough in commercial viability in terms of economics. An 8 inch SIMOX wafer costs in the neighborhood of $450 while an 8 inch prime polished wafer costs approximately $90.(Looks like a high-margin product WFR ought to be interested in, no?) Dataquest's data for the SOI market remains the widely accepted industry forecast. Growing at a compounded annual growth rate of 25%, total SOI wafer consumption in 2002 will be 16 msi (less than 1% of the silicon wafer market), revenue will be $132.5 million comprised of 30% thin soi and 70% thick soi. Past 2002, thin SOI will dramatically surpass the thick growth rate.(I didn't know about thick and thin...) Transportation and industrial requirements for high voltage device switches, highspeed signaling and sensor applications have created an immediate demand for thick SOI. MEMC's SiBond is commercially prooducing Thick SOI using proprietary Bonded SOI technology. Unlike Thick SOI, THIN SOI markets have a longer term horizon driven by ever increasing commercial demand for higher speed, lower voltage devices for memory and logic applications. MEMC has a Thin Research Program currently evaluating competing technologies for Thin SOI in terms of the technology, costs, and commercial viability and market timing. IBM is currently a customer of MEMC's (although I gather from the preceding not for SOI); however, IBM is pursuing the SIMOX process - ion implantation on prime polished wafers - using equipment purchased from IBIS.(I wonder if WFR has any IBIS equipment...)