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Technology Stocks : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: patrick tang who wrote (17924)	4/11/1999 6:09:00 PM
From: E_K_S	Read Replies (1) \| Respond to of 25814

Hi Patrick - Does LSI enter any long term wafer contract delivery commitments? I believe LSCC contracts with UMC for their expected wafer demand as far out as 18 months. Do you know if LSI enters into such contracts with key customers to utilize their planned future excess capacity? If so, does this type of plant capacity management bode well for LSI in the long term, or are they better off using their extra capacity for their own end-to-end chip production? If LSI sells some of their future capacity to key customers, what percentage of their "future" business does this represent (less than 10%)? I am specifically thinking about the utilization of their Gresham facility. Also, I recall reading the LSCC wafer delivery contract with UMC and it provided for a minimum guarantee number of wafers. Final prices per wafer were based on some average price that could be priced higher if overall industry capacity got tight. Would it not be wise for LSI to enter into such a variable price long term contract for a small percentage of their current(and future) extra capacity? EKS