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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Mark Oliver who wrote (5205)	1/10/1999 7:17:00 AM
From: Stitch	Read Replies (3) \| Respond to of 9256

Mark; <<So Fujitsu is using a coil process?>> Yes <<Have you talked to anyone at Magnecomp about CAPS? >> No Does CAPS come with tails and do you see this as an advantage? What do you mean "tails"? Are you talking about the method of termination? <<I wasn't able to speak to anyone from Nitto Denko at Diskcon, but they did have a display showing their CIS wireless circuit and it was on a panel. Are you sure they use a coil process?>> Yes, sure. <<How do patents fit into this process? Hutchinson is paying IBM for patents, but they've expanded on the TSA process and hold many patents themselves now. I had the impression NHK had also paid IBM for patent rights? Does Fujitsu have a clear path on CAPS without any patent issues?>> I haven't spoken with their lawyers <G>. <<How do you figure Seagate can continue using flex circuits from Innovex if they are not good enough? Do you see this relationship between INVX and SEG at risk? It would be a very big blow to Innovex.>> As I said I think it is at risk. While cost is lower the assembly process is very demanding and yields are not all that great. But then HTCH is likely still around 50% also. I am also not convinced they have resolved the mechanical issues like the stiffness component in the flex circuit becoming a major component of the overall flexure stiffness. It seems to me it may be a mechanical nightmare on the more delicate 30 percenters. But this is conjecture. <<Soon we will see a pre amp on the suspension. Do you see any special issues about that such as much higher ASP's, or greater problems with yields trying to make a more complicated product?>> I see it as an opportunity for more value added but there will be start up issues much like there were when RDRT and other head vendors were forced to supply stack assemblies. <<Have you got any opinion on microactuated suspensions?>> Yes. COOL! Best, Stitch

To: Mark Oliver who wrote (5205)	1/11/1999 4:48:00 AM
From: Z Analyzer	Read Replies (1) \| Respond to of 9256

<<I have heard the subtractive process can yield finer line widths? Do you think this is true?>> Doe it really matter? HTCH's annual report shows suspensions with microactation and chip on suspension (although separately). I have to believe they can do them together since they regard both as very impt to the future. If you can do both, are potentially finer lines an issue? With Fujitsu's suspension being one piece, would this seem to cause a risk of more expensive scrappage if future developments lower yields? Also, any idea why Fujitsu would suddenly be interested in selling to the outside when they have had this needed technology for so long? Stitch, I'm glad to see this is a subject of interest to you. I don't believe there is an analyst out there who follows HTCH closely enough to really understan the competitve situation or to know if Fujitsu becomes a threat. With Goldman Sachs the lead underwriter for HTCH's offering, it looks like HTCH should pick up some beneficial analyst coverage. Rick Shute has been on the calls for quite some time. Montgomery, which is not participating in the offerring, just upped their stock target from $50 to $60. A case can be made for higher prices if HTCH is on their way to 12 mil TSA per week by year end and to domination of this business which means you are addressing a very important issue. Thanks again for your interst in these subjects. Good luck, Z