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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Duker who wrote (30674)	5/27/1999 5:17:00 PM
From: Will Lyons	Read Replies (1) \| Respond to of 70976

Duker Sorry if I overracted. Your last post re the possible saturation of DRAM market is exactly what I had in mind. All those chips will still be using wafers and while part of the increase may be the result of smaller lines , some of it may require more wafers and other materials. Meanwhile the 80 percent increase by the two big producers may not require a proportionate increase in capital. Possibly not an additional fab! Your mentioned ATMI, I was thinking of WFR but have not looked at it for some time. Regards Will

To: Duker who wrote (30674)	5/27/1999 8:02:00 PM
From: gial	Read Replies (3) \| Respond to of 70976

While everyone is bracing for a turnaround in the semiequipment sector. I cannot help but noticing the old supply-demand force that has worked behind the rise and fall of these semi equip stock prices. Korean and Taiwanese chip makers are adding their capacity like crazy, each wants to gain market share at the expense of the others. While this is good for the equipment makers in the short term, they will lead to oversupply of the chips and the thus lower prices, which inevitably ushers in production and spending cuts. Ironically, the oversupply of chips is the result of the use of these advanced semi equipments which help the fabs churn out chips fast and efficient. The day the Taiwanese, Koreans and the Japanese chipmakers truly understand the law of supply and demand is the day we will see stable dram prices.