It says that fab utilization rates will drop in August, to 81.9% from 86.5% in June.
Utilization rates of between 20 and 30% of total capacity are common for first-line production storage systems.
Utilization rates are a measure of how many rigs are working on contracts in comparison to total fleet size.
The company said margins also were hurt by weaker than expected demand, which contributed to lower-than-anticipated ASPs and lower-than-expected manufacturing utilization rates.
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We believe that our competitors are now selling smaller diameter cores at cash cost in order to reduce inventory or to keep utilization rates high.
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This growth in the overall amount of content overwhelms our efforts to concentrate the storage of content and increase the utilization rates of digital storage systems.
This gives business managers an opportunity to improve budgeting for projects, without having to worry about utilization rates or idle hours if there is a gap in demand.
We expect the upswing in utilization rates to continue over the next couple of years, buoyed by high crude prices and efforts from oil companies to replace declining reserves.
However, we expect that as the industry revives and demand picks up, TI could leverage this additional capacity and consequently increase its factory utilization rates which, in turn, will improve the gross margins.
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He also noted that chip factory utilization rates have declined to slightly below-seasonal levels, and that contract prices for both DRAM and NAND memory chips are expected to drop in Q3, due to weak PC and smartphone demand.
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He thinks Q1 results will be in line with guidance, but anticipates near-term softening of semi industry capital spending and lower fab utilization rates will lead to lower than expected Q2 guidance, with softness potentially lingering into the third quarter.
The FOMC also says it continues to anticipate economic conditions, including low rates of resource utilization, subdued inflation trends and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.
Hospital workers also had rates of emergency department utilization and hospital admission for a number of chronic medical ailments including congestive heart failure, hypertension, depression, coronary artery disease, diabetes, asthma as well as obesity.
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While the increased shipping demand is unlikely to result in better rates, it will contribute to higher utilization levels which would positively impact both profitability and revenues.
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These are hardly excessive growth rates in normal times, much less in an economy with almost 10 percent unemployment, with capacity utilization down from the 80s to the 60s, and with nonbank credit sinking, productivity growing rapidly, and with unit labor cost declining.
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