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To: Cary Salsberg who wrote (2119)	5/8/1999 11:56:00 AM
From: Katherine Derbyshire	Respond to of 2946

SVG's 157 nm plans are discussed in more detail at news.semiconductoronline.com The industry-wide outlook for 157 nm is discussed at news.semiconductoronline.com The industry consensus seems to be that a catadioptric lens design (both reflective and refractive elements) will be required for 157 nm. SVG currently uses such designs for all its systems, and therefore has a great deal of expertise (and probably patent protection). I'm not willing to say that other companies won't be able to catch up--engineers with lots of R&D money can accomplish great things--but SVG does have at least a temporary advantage. Regardless of how Intel feels about SVG's long term prospects, it certainly makes sense for them to hedge their bets and ensure access to early 157 nm systems. That's really why I wasn't terribly impressed with the announcement. Given the small size of the investment, it struck me as more along the lines of hedging than a major vote of confidence. Intel's getting an awful lot for their $15 million. All of this is unlikely to have much effect on SVG's financial results in the short term. 157 nm pilots are probably at least 5 years out, and production is likely to be a few years after that. A lot can happen in 5 years. Katherine