Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

marginnayan.....

No, TXN reported ok today, and I see nothing to pick at. Like they said, they are picking up market share in some areas - that comes at the expense of their competitors and does not indicate a strengthening of their markets or demand. I believe that margins did suffer, but from what I am hearing around the sector, margins and ASP's are under heavy pressure everywhere except in those areas where a company has little competition, which are few and far between in this environment.

The competition for business is very intense for both the chips and chip equipment companies, and a good example of that has been KLIC, which has a technically superior bonder that is both faster and supports a lower pitch but no one is willing to pay the price for it. ASMI is hurting them badly because their product can be sold for less, not because it is superior. The Japanese are also being very aggressive on price and hurting both chip and equipment companies.

Good luck to you.

mlsoft