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Global semiconductor sales account for hundreds of billions of dollars and millions of good jobs here in the U -- and around the world.
Cars computers even.
Elevators your gadgets.
Everything in our lives these days has tips and at some protesters have called for 20% decline in sales for the industry.
This year perhaps even next and lots more painful job cuts.
Nobody has -- better insight in the industry that our next guest the CEO of novellas which sells the giant equipment.
That goes into the semiconductor factories around the world walking back to happy hour.
CEO Rick -- how aria good thank you go to Arizona and a founder that you as they were coming on.
Out of the commercial break right you said today things were dropping last -- I was on -- November but they are ice at stabilizing said no we're in good shape.
Doctoral payless and when your show -- that much money down the throat of that horse it's got to come out for us birds to eat somewhere I thought.
Mine that's right I mean all across the world you got money going and by government I'm not saying it's the smartest money and -- -- But it's got to come out somewhere and we get to feed off could -- Amazing thing you're painting a pretty rosy picture for the fourth quarter and hot the obvious question is like what's what's changed a lot of -- work past there.
Not so much that you know they're going to be that great but just not as bad as once feared what's changed over the past cup.
-- quarters well I think what a lot of the things that happened a year ago you know we've begun to drain the swamp a little bit.
I you know last time Circuit City -- was on Circuit City had just gone out of business and asked me what got to do what I said next weekend Bob by a TV is -- -- -- Get it while it -- and I think a lot of those shells have been drained.
We need consumer spending -- comeback but I think that'll come back right after corporate spending.
The lord knows with the burden we're gonna have honest with taxes we got to get a lot more efficient.
That means more computers more semiconductors -- good for the equipment.
Well let's let's talk about deficit have you drawn down inventory or you just you keep -- -- Victoria hi it's a lot of people say.
Now that's a real good sign for the economy that most companies have drawn down their inventory they have to produce it and -- the body and employ people were you on the on the on the chain inventory change well I think we've all as an industry in a high tech industry have become very very good at keeping a very very tight inventory.
And so from that standpoint I think it's pretty lane and when this thing pops back and -- back in a big way.
So it you know you mentioned.
Couple corporate spending consumer spending but -- start up front in the stimulus package that's to come out for a minute government spending -- accounting for so much of the demand including in China.
Where we might be seeing serious inventories even in the chip sector being felt even in the -- sector that being built.
How confident are you that this is somehow sustainable past the fourth quarter how much vision into this upturn and good shape saying that you're talking about.
The well human being why are totally opposite at.
I don't want to go there -- You know I've never seen so many desires around since prior to the Bolshevik revolution I just went back.
-- -- I retired a stars -- but -- god I I think though that fundamentally.
You know money is useless unless it's moving.
And so the concept of at least trying to stimulate the economy is a good one.
Now -- a long term ramifications.
I don't think we've seen it coming to the United States as much as we've seen it in Asia semiconductors -- international business.
I think China is still holding up pretty well I think.
The US isn't the only market.
But I I I do believe that you know if you look at the health bill -- the negative side of it is it's a huge deficit I think that's a problem.
But in the short term they're gonna take all our medical records -- gonna put a -- storage that's going to be NAND flash going to be.
More the merrier -- got to look at the bright side of that.
And what about you know you put a lot of chips in in cars right and it's not mistaken that's been a big cash for clunkers and we just crushed a whole bunch of and so we got to make some new ones so.
Cars you see the auto industry turning around being a good thing for your business well I think.
You know people the auto industry is gonna have a cycle the auto industry isn't going away people aren't giving up buying cars.
It's a base industry.
I think storage mass storage is a big one big changes going from rotating platters solid state.
You know state drives big opportunity for -- semiconductor industry.
Not only -- laptops but also insistence go ahead.
-- when you look we eat paint this rosy picture for the fourth quarter you make -- a pretty big back as he sat on the consumer.
Which has been cutting back a lot on the big ticket items out there a lot of electronics purchases and it continued to go down I mean are you so sure that the consumers that a comeback that's much.
I don't think it's the consumer coming back right now I think it's got to be corporation -- you know we got we've -- a lot of people.
We've got to make up that productivity there's no question about that.
And I think we're starting to see that come back in the economy already.
Rick we're just about run out of time and when asked about the -- we got new tech -- coming through perhaps -- have any opinions on this go ahead.
What do you think.
-- dollar war there's been several Ponzi schemes over.
The years certainly Madoff is one of the biggest ones we've ever seen people forget Social Security.
And you know what if we have this idea that you can have health care for free and nobody has to pay for it that'll be the next Ponzi scheme so.
Our are the -- Raquel thanks for joining us all -- --
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