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To: Ian@SI who wrote (368)	7/12/2011 3:55:39 AM
From: Cary Salsberg	Read Replies (1) \| Respond to of 546

Hill did not relate his customer's caution to Japan or an economic cycle. He mentioned a few parameters which have trended lower such as foundry utilization and memory prices, but continues to believe them to be a short term phenomenon. There are macroeconomic factors which might cause Hill's customers to increase their caution. Both the US and China have slowing economies. Europe has financial problems in some countries. The US is threatening default and leading economist have warned about negative consequences if it defaults. In some sense, Hill's customers might be described as prudently cautious, but caution strongly affects capital investment decisions.