Thanks for the write-up! It's very interesting to peel back the layers on how semis are made. Correct me where I am wrong. The process you described is making one layer of the wafer. Do the # layers increase as nodes get smaller or that is not correlated? Would EUV be used in making all those layers or only the smallest patterns?

Expand full comment
Nov 22, 2020Liked by Doug O'Laughlin

Thanks for write-up, super helpful as always- may I ask, i get it’s purely illustrative but is there are a reason you’re using net income (so net of d&a) and still subtracting capex in your DCF?

Also referring to your previous posts - if they own 100% of the best incremental technology and we think demand for semis will grow exponentially (due to AI) I would have thought the CAGR implied by the 2025 target is not particularly impressive? Or I am missing something in the bargaining power they have with customers or how the demand for their product correlates with semis demand?

Many thanks

Expand full comment