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Technology Stocks : ESST-the new beginning. -- Ignore unavailable to you. Want to Upgrade?

To: Steve Reinhardt who wrote (2227)	1/8/1999 7:27:00 PM
From: Ram Seetharaman	Read Replies (1) \| Respond to of 3493

Good Job Steve! ESST - $ 9 by next week ........ and then an impressive earnings/profit announcement thereafter, should make me immensely happy!

To: Steve Reinhardt who wrote (2227)	1/8/1999 7:39:00 PM
From: Synapsid	Respond to of 3493

It's interesting that TSMC's December sales are relatively slow, while bookings are up. Overcapacity means more flexibility to respond to demand increase for ESST (which probably has been the case) as well as low wafer prices which helps ESS's gross margins, although it can also cause price pressure from competitors. From the TSMC report, it sounds as if many IC companies underestimated seasonal demand and are now starting to catch up with demand. Somewhat out of topic, I think part of the reason for TSMC's slower sales vs UMC is that mainstream, low-end graphics ICs (historically a big part of wafer demand) from ATI and S3 that dominate unit shipments are manufactured at UMC, while TSMC mostly has high-end graphics customers (3Dfx, NVIDIA, ATI Rage 128) which are not yet shipping ultra-high unit volumes.