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To: shane forbes who wrote (18598)	5/28/1999 10:51:00 AM
From: Beachbumm	Read Replies (1) \| Respond to of 25814

Shane, RE: TSMC's equity offering, that's exactly what I meant some time ago when I asked, What if this is as good as it gets? I don't really think so, but I try to temper my expectations with at least the possibility that there may be something we're not seeing. As for the tax thing, 'fraid I must agree with Dipy. Unless the tax rate is truly confiscatory it is irrelevant to buy/sell decisions. Who in retrospect would not have preferred to sell LSI in '95 at 65 instead of riding her down to 12 in '98? Taxes be damned! The problem is that a stock like LSI cannot be held long term so that heirs can assume a new basis, etc. I'm not sure there is any stock anymore that can really be held long term. Maybe GE, Coke, Mister Softee? Hard to say. I suppose this gets into the trader vs. investor debate, but considering the rapid rate of change in the world today, is it not safe to say that in the end we are all traders? Regards, Beachbumm

To: shane forbes who wrote (18598)	5/28/1999 1:19:00 PM
From: patrick tang	Read Replies (3) \| Respond to of 25814

The world of semi start-up in the Far East has changed from the DRAM model to the foundry model since DRAMs been bad for 3+ yrs while foundries been good for 3+ years. For the next downturn, I expect the foundry guys to take the blunt of the downturn when they have to produce wafers at a book loss for the IP guys. Those Silterra guys in Malaysia will not be the only one, though probably the first one. Right behind them within the next year will probably be at least another 3 or 4 guys trying to build mega-fab foundries. They will be in Thailand, India, Vietnam whatever. By the time they gets ramped up, there should be an over-supply of foundry capacity and only so much good IP to go around. The IP guys will rule. There is no need for LSI to build the interim fab before the 12". It will be much cheaper to buy foundry capacity at below cost prices. patrick