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To: BMP who wrote (16007)	11/16/1998 8:44:00 PM
From: patrick tang	Respond to of 25814

Design simulation is very much tied to THE process. The more thoroughly you know your process, the better off you are. Running at foundries also incurrs its own set of problems. At up turn, hard to get capacity, at downturn, may have to run unprofitable wafers not just to hang onto capacity but also by contractual terms signed during good times. Just look at ALSC, bleeding red ink Q in Q out but can't cut wafer starts because of take or pay contracts. Also, in good times, the manufacturing side makes money too, TSMC typical example. Not bad business, 50% margins. patrick