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To: patrick tang who wrote (14758)	9/4/1998 2:40:00 PM
From: shane forbes	Read Replies (1) \| Respond to of 25814

Patrick: Yes what we are seeing in the foundry business is a repeat of what we saw in the DRAM business. A lot of new money being attracted to what looks like easy profits. Of course these guys never learn - too many cooks spoil the broth... Having said that the easy way out is consolidation. I saw that LG Semicon and Hyundai are in the process of merging their DRAM operations. Likewise I saw a note some months ago about UMC and TSMC considering a merger. So the small guys need not vanish per se they could just merge. We shall see... [I think TSMC produces 50% net margins! So of 1.3 billion in revenue 650 million is profit to shareholders. No wonder other companies want in!]