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To: Thomas G. Busillo who wrote (45686)	5/10/1999 12:12:00 AM
From: Fabeyes	Read Replies (1) \| Respond to of 53903

…So in producing more, you're lowering costs (which on the firm level is a good thing), but on the industry level may turn out to exacerbate any supply/demand imbalance… This is theory, but you forgot one thing, and few people add it to the equation: yield. If yield falls the more you start the more it cost you. If there is a loss of, let's say, $1.00 per part, you just keep losing money from wafer start to out the door. Yield, probe-to-test, is where the money is made. Not how many wafers you start or how many make it to probe. If you get 50% yield, you have lost a lot of money.