Question-and-Answer Session
At this time, we will open the floor for questions. [Operator Instructions]. Your first question comes from the line of Mehdi Hosseini with FBR. Please proceed.
Mehdi Hosseini - Friedman Billings Ramsey
Yes, thank you for taking my question. Regarding your capital intensity return asset and so forth and the demand for 65, 55-nanometer, does that imply that the 45-nanometer technology node may not be getting much momentum in the near term and we are seeing a dramatic change in the costs and benefits of Mozilla?
Dr. Rick Tsai - Chief Executive Officer and President
Hello. No, I don't think so. The 45-nanometer technology is moving along fairly well for both the low power version and the generic version. Our customers, actually we have really many customers looking on the deal line and the take out will occur starting second quarter and goes down. Actually the production will start in probably somewhat more of volume in the fourth quarter timeframe, and certainly I think it will go into a much more slim-looking level in 2009. I think if you look at the two 65-nanometer ramping schedule and the 45-nanometer ramping schedule, there is really not much difference from the time point of view.
Mehdi Hosseini - Friedman Billings Ramsey
Okay. But for your customers to be able to afford to go down to 45-nanometers and at the same time you will be able to improve the profit margin for this particular node, something has to give, either you mass production to reduce the cost or your customers would be able to charge more from their customers. I just don't... I am still not clear the dynamics of the supply and demand for these expensive project nodes?
Dr. Rick Tsai - Chief Executive Officer and President
I think you can say that the... and so your question, if you think about it, you can ask this question when we started the ramping 65-nanometer vis-
- To read the full transcript on Seeking Alpha, click here »
