Teradyne To Buy Eagle Test
September 18, 2008 at 8:56 am | In Manufacturing | Leave a CommentTags: ATE, Equipment, Manufacturing
Business Wire (September 2, 2008)
NORTH READING, Mass., Sep 02, 2008 (BUSINESS WIRE) — Teradyne, Inc. (NYSE:TER) and Eagle Test Systems, Inc. (NASDAQ:EGLT) today announced that they have signed a definitive agreement under which Teradyne will acquire Eagle Test. Teradyne is a world leader in System-On-a-Chip (SOC) semiconductor test, while Eagle Test is a leading provider of analog, mixed-signal and radio frequency semiconductor test products.
Under the terms of the agreement, Eagle Test shareholders will receive $15.65 per share in cash. The aggregate purchase price is expected to be approximately $250 million, net of cash acquired, and includes the fair value of fully vested employee equity instruments. Teradyne has secured a bridge financing commitment in connection with the transaction.
The transaction is expected to be accretive to 2009 non-GAAP EPS, after excluding purchase accounting effects.
“We’re very pleased to be combining forces with Eagle Test,” said Mike Bradley, president and CEO of Teradyne. “Eagle Test has a solid franchise in power management and other analog-dominant IC test applications, which will complement the SOC test solutions provided by our FLEX and J750 test systems. We plan to put the full weight of our worldwide distribution organization behind Eagle Test’s ETS product line so customers can benefit from this very cost effective test platform.”
“I am extremely excited about the opportunity to combine the effectiveness of Eagle Test’s products and the strength of our financial model with Teradyne’s tremendous market presence and worldwide distribution and support organization,” said Len Foxman, CEO, president and chairman of Eagle Test. “Teradyne’s sales and marketing infrastructure, along with their global customer relationships, will greatly accelerate Eagle Test’s mission to deliver strong customer value and grow our business.”
The acquisition will be subject to customary closing conditions, including the approval of Eagle Test shareholders, the receipt of clearance under the Hart-Scott-Rodino Antitrust Improvements Act, and the absence of a material adverse change with respect to Eagle Test. The acquisition is expected to close in the fourth quarter of 2008. After the closing, Eagle Test will be run as a business unit within Teradyne’s Semiconductor Test Division.
About Teradyne, Inc.
Teradyne (NYSE:TER) is a leading supplier of Automatic Test Equipment used to test complex electronics used in the consumer electronics, automotive, computing, telecommunications, and aerospace and defense industries. In 2007, Teradyne had sales of $1.1 billion and currently employs about 3,600 people worldwide. For more information, visit www.teradyne.com. Teradyne (R) is a registered trademark of Teradyne, Inc. in the U.S. and other countries. All product names are trademarks of Teradyne, Inc. (including its subsidiaries).
About Eagle Test Systems, Inc.
Eagle Test Systems (NASDAQ:EGLT) designs, manufactures, sells and services high performance automated test equipment for the semiconductor industry. The company’s products are used to test analog, mixed-signal and radio frequency (RF) semiconductors that are used in products such as digital cameras, MP3 players, automotive electronics, cellular telephones, computers and peripherals. The company was founded in 1976 and has offices located throughout the world, with corporate headquarters in Buffalo Grove, Illinois. For more information, visit http://www.eagletest.com.
Applied to establish Asian operations hub
July 9, 2008 at 1:37 pm | In Uncategorized | Leave a CommentTags: Asia, Equipment
7/8/2008 – Electronic News
Applied to establish Asian operations hub
The facility will be located in the Changi North Industrial Park, is expected to be completed late next year and will be designed to meet some of the highest green building standards in the world, Applied noted.
By Ann Steffora Mutschler, Senior Editor — Electronic News, 7/8/2008
To serve as a hub for semiconductor manufacturing equipment giant Applied Materials Inc’s business activities in Asia, the company broke ground today for the construction of a new operations facility during a ceremony in Singapore with Singapore economic development board chairman Lim Siong Guan, company executives, and US Ambassador Patricia Herbold.
The facility, which will be located in the Changi North Industrial Park, is expected to be completed late next year and will be designed to meet some of the highest green building standards in the world, Applied noted.
Commenting on the operations centers, Mike Splinter, president and CEO of Applied said in a statement, “Sitting at a virtual crossroads between India and China, Singapore has proven to be a friendly and great place to do business with its strong transportation and logistics network, extensive supplier base and talented workforce. Our state-of-the-art campus will showcase our commitment to the environment while bringing enhanced capabilities closer to our customers throughout Asia.”
The 32,000 square meter operations center will serve as a base for Applied’s global purchasing, sales, manufacturing, engineering and financial groups to support the Asia region chip industry and the rapidly growing solar markets in India and China, the company said.
1st fall in 6 yrs likely for FY 2008 sales of chip-making equipment in Japan
July 7, 2008 at 9:08 am | In Uncategorized | Leave a CommentTags: Asia, Equipment
- July 3, 2008 Thursday 9:55 AM GMT – Semiconductor International
News from LexisNexis
Japan Economic Newswire, July 3, 2008 Thursday 9:55 AM GMT
Sales of semiconductor production equipment in Japan are expected to decrease in fiscal 2008 for the first time in six years after setting an all-time high in fiscal 2007 ended in March, an industry body said Thursday.
Sales for fiscal 2008 are projected at 949.4 billion yen, down 11.2 percent from the previous year, as chipmakers, such as those producing dynamic random access memory chips, are cutting back on capital spending amid falling prices, the Semiconductor Equipment Association of Japan said.
The projection is in stark contrast with a 4.4 percent increase in sales in fiscal 2007 to a record high of 1,069.4 billion yen.
The association is forecasting a sales increase of 2.2 percent to 970.6 billion yen in fiscal 2009 and a 5.3 percent gain to 1,022.1 billion yen in fiscal 2010.
Copyright 2008 Kyodo News Service All Rights Reserved
Applied, Francisco Partners make combined front-end offer to ASMI
July 1, 2008 at 3:08 pm | In Manufacturing | Leave a CommentTags: Equipment, Manufacturing
6/18/2008 – Electronic News
Applied, Francisco Partners make combined front-end offer to ASMI. Applied also reaffirmed its offer for ASMI’s ALD and PECVD businesses. By Ann Steffora Mutschler, Senior Editor — Electronic News, 6/18/2008
Following an offer from Applied Materials Inc of between $400 and $500M for its ALD and PECVD businesses early this month, and its subsequent rejection of that offer last week, Bilthoven, Netherlands-based semiconductor manufacturing equipment supplier ASM International NV (ASMI) said today that it has received a combined offer from Applied and Francisco Partners for its remaining front-end businesses for $225 to $300 million. Applied also reaffirmed its offer for the ALD and PECVD businesses, ASMI said.
ASMI said its management board and supervisory board will internally discuss the offer and its implications.
The company concluded that it will determine its initial position with respect to the combined offer and make a public announcement when ready.
Tech-focused equity firm Francisco Partners also holds a 6.3% ownership interest in the Intel-STMicroelectronics flash joint venture, Numonyx.
Credence, LTX integration – Taking the Measure
July 1, 2008 at 2:55 pm | In Uncategorized | 3 CommentsTags: ATE, Companies, Equipment
Blog on Test & Measurement World
Rick Nelson CEOs address proposed Credence, LTX integration, June 25, 2008
Credence and LTX complement each other with respect to customers, product lines, facilities, and employees, say Lavi Lev, president and CEO of Credence, and David Tacelli, CEO and president of LTX. The executives outlined their reasons for the proposed merger in a conference call Monday (see “Credence, LTX plan merger, rationalization ahead”). In a follow-up interview, they reiterated some points, and although they could not talk about future roadmaps, they did provide some historical context that might suggest what the new company could look like.
As a prelude to their comments, Lev, who would become executive chairman of the combined company, said that the recent announced sale of Credence’s automotive ATE operations in Amerang, Germany (the old SZ Testsysteme), to Advantest was unrelated to the plans to merge with LTX. The Advantest deal, he said, “was a direct continuation of our logistical footprint reduction and had been planned for quite some time,” and the timing of the announcement was related solely to the complexities of closing a deal involving parties in the US, Germany, and Japan.
I asked specifically about overlap in product lines, as both companies are addressing mixed-signal and RF consumer semiconductor test. Lev commented on his past experience with mergers and acquisitions: “Normally you need to deal with significant overlap between companies, and things stall,” until product lines are rationalized. As for Credence and LTX, he said, “The overlap is obviously not nonexistent,” but he added, “One of the major reasons for this merger is to have very comprehensive coverage of the technical needs that are required for the consumer market.”
Lev said he could not speak about the product roadmap going forward, adding that it would be Tacelli’s role (as CEO and president of the new company) to present that information after the deal closes. Lev did say, however, that in the past he has seen little or no competition from LTX for business served by Credence’s ASL platforms. “On the ASL side it’s pretty clear that we are a very strong player.” Similarly, he said, Credence dominates LTX in high-end applications served by Credence Sapphire platforms.
He did say that the Credence Diamond and LTX X Series platforms have overlapping mixed-signal capabilities that will need to be sorted out. He added, though, that the Credence Amerang team performed the mixed-signal development for the company, and with the sale of the Amerang operation, Credence would not bring to the combined companies an engineering team that competes with LTX’s mixed-signal developers. He also suggested that X Series RF platforms may dominate their Diamond-family competitors—the Diamond 40 RF, he said, “is just starting its baby steps in the RF market.” Consequently, he said, the two companies’ “critical masses are distributed very nicely. There will always be something—that’s why we got the best ATE CEO around to figure it out.”
For his part, Tacelli commented on the lack of customer overlap. Credence, he said, has focused on penetration into fabless companies and is very strong in Asia, having provided the bulk of the 4000 platforms the two companies now field there. Meanwhile, LTX, he said, has focused on IDMs.
Tacelli reiterated his earlier comment during the Monday conference call that of 42 offices worldwide, the combined companies could close about 15 duplicate ones to contribute to the $25 million in annual savings the companies have predicted they can achieve. Lev said that fortuitously, in each of the 15 locations likely to see one facility closed, one or the other companies now has sufficient square footage to accommodate the other’s resources.
One concern that ATE customers typically voice is that they don’t want to pay multiple ATE suppliers to perform duplicate R&D—and proponents of the Semiconductor Test Consortium (STC) have advocated an industry standard that could result in sharing of costs related to “precompetitive” R&D. I asked whether Credence and LTX combined could realize R&D efficiencies. Tacelli would say only that “It’s safe to assume that we’ve looked at every element of our overhead, our structure, our cost relating to every function, R&D being one of them.”
I asked about whether the combined company would continue LTX’s recent support for some STC efforts (see “Thinking out of the box: Expanding STC’s impact with STIX”). Tacelli said that although he hasn’t supported the group’s original efforts to provide standardization within the tester, he does support the group’s recent efforts to standardize on common hardware and software external to the tester. Lev concurred, recalling his time in the EDA industry and his support for providing common interfaces into which customers could plug the IP of their choice. With standards, he said, “The customer needs to benefit—that’s priority number one.”
Posted by Rick Nelson on June 25, 2008 | Comments (0)
SEMI REPORTS FIRST QUARTER 2008 WORLDWIDE SEMICONDUCTOR EQUIPMENT FIGURES; BILLINGS US$10.56 BILLION
June 30, 2008 at 2:14 pm | In Forecast, Manufacturing | Leave a CommentTags: Equipment, Forecast, Manufacturing, semiconductor
SAN JOSE, Calif. – June 16 2008 – SEMI today reported that worldwide semiconductor manufacturing equipment billings reached $10.56 billion in the first quarter of 2008. The billings figure is seven percent greater than the fourth quarter of 2007 and two percent less than the same quarter a year ago. The data is gathered in cooperation with the Semiconductor Equipment Association of Japan (SEAJ) from more than 150 global equipment companies that provide data on a monthly basis.
SEMI also reported worldwide semiconductor equipment bookings of US$8.08 billion in the first quarter of 2008. The figure is 23 percent less than the same quarter a year ago, and 11 percent less than the bookings figure for the fourth quarter of 2007.
“While bookings have weakened in the first quarter, overall industry billings remain at levels higher than the end of last year,” said Stanley T. Myers, president and CEO of SEMI. “Some regions, specifically North America, Korea, and China, posted strong quarter-over-quarter growth in spite of the conservative capital environment.”
The quarterly billings data by region in millions of U.S. dollars, year-over-year and quarter-over-quarter growth rates by region are as follows:
Source: SEMI/SEAJ June 2008
Note: Figures may not add due to rounding.
The Equipment Market Data Subscription (EMDS) from SEMI provides comprehensive market data for the global semiconductor equipment market. A subscription includes three reports: the monthly SEMI Book-to-Bill Report, which offers an early perspective of the trends in the equipment market; the monthly Worldwide Semiconductor Equipment Market Statistics (SEMS), a detailed report of semiconductor equipment bookings and billings for seven regions and over 22 market segments; and the SEMI Semiconductor Equipment Consensus Forecast, which provides an outlook for the semiconductor equipment market. For more information or to subscribe, please contact SEMI customer service at 1.877.746.7788 (toll free in the U.S.) or 1.408.943.6901 (International Callers).
SEMI is the global industry association serving the manufacturing supply chains for the microelectronic, display and photovoltaic industries. SEMI member companies are the engine of the future, enabling smarter, faster and more economical products that improve our lives. Since 1970, SEMI has been committed to helping members grow more profitably, create new markets and meet common industry challenges. SEMI maintains offices in Austin, Beijing, Brussels, Hsinchu, Moscow, San Jose, Seoul, Shanghai, Singapore, Tokyo, and Washington, D.C. For more information, visit www.semi.org.
ASSOCIATION CONTACTS:
Scott Smith/SEMI
Ph: 408.943.7957
E-mail: ssmith@semi.org
Dan Tracy/SEMI
Ph: 408.943.7987
E-mail: dtracy@semi.org
North American Semiconductor Equipment Industry
June 30, 2008 at 12:17 pm | In Forecast | Leave a CommentTags: Equipment, Forecast
SEMI – Home
from semi
May 2008 Book-to-Bill Ratio of 0.79North America-based manufacturers of semiconductor equipment posted $1.03 billion in orders in May 2008 (three-month average basis) and a book-to-bill ratio of 0.79 according to the May 2008 Book-to-Bill Report published today by SEMI. A book-to-bill of 0.79 means that $79 worth of orders were received for every $100 of product billed for the month.
Is the worst over?
June 30, 2008 at 12:12 pm | In Forecast | Leave a CommentTags: Equipment, Forecast
From EDN article
Christopher Danely, managing director, senior analyst and global coordinator for semiconductors at JP Morgan said earlier this month at the Churchill Club’s 12th
Annual Semiconductor Forecast that he believes the worst is over.
“Multiples have come down because stockholders realize growth in the
industry is slower,” he said.
Danely reminded that semiconductor industry revenue grew at a
9-year CAGR of 13% between 1990 and 1999, but growth has since slowed
to a 5-year CAGR of 10% between 2003 and 2008 (estimated).
Comparatively, the US GDP grew at a CAGR of 5.3% between 1990 and 1999,
and 4.9% between 2003 and 2008 (estimated).
Between 1995 and 2008 (estimated), semiconductor industry revenue
grew at a 13-year CAGR of 5%, while the US GDP grew at a CAGR of 5.1%.
On a unit basis, semiconductor industry units have grown at a 9-year
CAGR of 9% between 1990 and 1999 and have accelerated to a 5-year CAGR
of 11% between 2003 and 2008 due to increasing semiconductor apps in
consumer electronics. At the same time, ASPs rose at a 9-year CAGR of
3% between 1990 and 1999 but have declined at a 5-year CAGR of -1%
between 2008 and 2008 mainly due to pricing pressures from the consumer
end market.
As such, Danely expects lower, but still good, growth for the industry.
Interestingly, he also believes semiconductor companies should be
run more like “normal” companies [i.e. Philip Morris] and less like
growth companies [ala Google]. Specifically, changes are needed in
order to create shareholder value, namely more dividends, less
operating expenses, and increased focus on cash management.
Although he believes the worst is over, he acknowledged that it is
hard to get excited as demand is lackluster. Coupled with that, margins
are not attractive but valuation is seen to be OK for 2009. While
inventory is no longer excessive, it is definitely not too low either –
all of which boils down to another year of so-so returns, Danely
concluded.
Speaking of demand, during the same Churchill Club event, Dan Niles,
CEO of Neuberger Berman Technology Management, a subsidiary of Lehman
Brothers, asserted that a true picture of end user demand for the year
is not clear, making it is difficult to rely on forecasts.
While the government stimulus checks are boosting consumption, once
they are spent, the picture will be clearer as to what consumer
spending may be. Because of this, Niles said there is reason to worry
about a recession occurring late this year or early next year.
Compounding matters of a murky demand picture is the skyrocketing
price-per-barrel of oil, higher food and consumer goods prices due to
rises in transportation costs and, of course, the housing crisis. “The
inventory of unsold homes is the underpinning of all the problems we’re
having,” Niles noted.
Add to that income volatility, which leads to economic insecurity and the consumer sentiment index falls.
The global economic environment comes into play as well. As economic
growth stalls around the world, semiconductor growth will stall as
well, he said.
Niles also observed that emerging markets are not doing as well as
expected, and pointed to PC makers Acer and Lenovo, both of which
posted less than stellar Q1 financial results.
In addition, the handset market in China is slowing, according to
Longbow Research semiconductor analyst Tayyib Shah, based on a June
survey of mobile phone retailers in the US and China that shows the US
market rising and the Chinese market flattening.
“China’s flat month-over-month sales number is a sign of weakness in
that growing market which had seen near double-digit sequential. In the
US the average was driven up by a number of contacts at Best Buy who
reported a month-over-month sales increase of over 25%. If we strip out
the numbers reported by our Best Buy contacts, the remaining US
contacts reported a 3% month-over-month increase in sales,” Shah
offered, in a statement.
Shah said these trends support the 2% quarter-over-quarter decline
in National Semiconductor’s handset revenues that he is projecting for
the company’s fiscal Q1 2009 (ending August).
The handset trends in China are attributed to macroeconomic concerns
over a slowing economy, a high inflation rate, and the recent
earthquake. In addition, China shortened its May Labor Day holidays to
three days this year from seven days last year, which Shah believes
dampened handset sales.
As if that weren’t enough, last Friday, the Dow Jones Industrial Average dropped more than 200 points,
tamped down by another steep decline in financial shares and a big
rebound in crude-oil prices, according to the Wall Street Journal.
Trading ended below the 12000 mark for the first time since March 17.
In the end, there is no way to know how 2008 will wrap up for the
semiconductor industry until a clear picture of consumer demand can be
had – since that segment drives so much of the industry’s activities.
One thing is for sure, the industry is in for a bumpy ride until then,
with conditions likely to get worse before eventually improving.
While all the bad news can get oppressive, thankfully during the
Churchill Club event, Sangeeth Peruri, managing director of J. & W.
Seligman & Co. reminded that the great thing about the
semiconductor industry is Moore’s Law, which drives constant innovation
and new opportunities for growth.
ATE Industry Maneuvers Around ‘Perfect Storm’ of Issues at 90 nm and Below
June 1, 2008 at 2:59 pm | In Uncategorized | Leave a CommentTags: ATE, Equipment
ATE Industry Maneuvers Around ‘Perfect Storm’ of Issues at 90 nm and Below
Sally Cole Johnson, Contributing Editor — Semiconductor International, 6/12/2008 8:32:00 AMAs outlined in the 2007 edition of the International Technology Roadmap for Semiconductors (ITRS), the most immediate technology challenge the automatic test equipment (ATE) industry faces is “test for yield learning” — essential for fab process and device learning below the wavelength of light or the sub-optical space of 90 and 65 and 45 nm and future process nodes.
Discrete challenges are combining and churning to create a “perfect storm” for ATE vendors to maneuver around, while they also take on a myriad of design sensitivity issues occurring at 90 nm and below. Recent assembly and packaging technology advancements, combined with the challenges of optimizing the same wafer fabrication process for different core semiconductor technologies, are helping system-in-a-package (SiP) gain ground on system-on-a-chip (SoC). But wafer fab process improvements and design/design for test (DFT) needs show potential to push SoC to the forefront. Or, we may see more hybrids in the future. One thing is for sure: Integration is a trend that shows no sign of slowing, and it’s introducing more complexity into the equation.
Designs below the 90 nm node are extremely sensitive to fabrication equipment variation, which is causing new defect mechanisms and fault models for SoC and SiP. “We’re moving from the world of random defects from particulates to systemic defects caused by the finite sensitivity between the design and process,” said Colin Ritchie, Verigy’s (Cupertino, Calif.) product marketing director of the Inovys yield-related line. “In addition to addressing systemic problems, our customers are seeing more parametric variability, which can exhibit in a number of different areas. Transistor performance is degraded because of leakage issues, and sensitivities to small variations in voltage, power, temperature or any other operating environmental effect can cause the design to perhaps function, but not to specification. It’s particularly challenging when you look at very advanced high-power devices in the communications, computer or graphics or other markets. These problems require new solutions. This is where the ATE industry is being challenged in a new domain.”
All of the top semiconductor manufacturers are finding that the contribution of yield loss caused by design-induced problems or design sensitivities gets out of whack as they move to sub-90 nm designs. “They may have followed more than 300 design rules and done all the design simulation that their EDA tools enable them to do, but they’re still finding significant contribution of yield loss due to sensitivity,” Ritchie elaborated. To put it into perspective, a typical 90 nm fab today produces somewhere on the order of 30,000 wpm, which run about $5000/wafer. Every single-digit percentage of yield improvement or loss contributes roughly $1.5M to revenues each month. This makes accelerating the detection and diagnosis of design-induced failures a priority in terms of achieving time-to-market for these devices.
“There are several elements of complexity here to deal with the sheer number of transistors being embedded into a single device and the interoperability between one microprocessor core and the next,” Ritchie said. “While the number of transistors has increased exponentially, what hasn’t changed is the external I/O — 300-500 pins is mainstream now.”
What do you do when you’ve got all this complexity, more transistors, less access and debug time, and are under pressure to get the job done faster? One way to address it is to get a better view inside the device, inside the I/O, using DFT. “Essentially, you scan elements into a design to significantly increase the stimulus and observation of that design within the die — rather than from outside,” Ritchie said.
Why is DFT so important? “What we’re finding at the advanced technology nodes is that the DFT or structures scan is actually detecting the design for process sensitivities first,” Ritchie explained. “In these advanced devices, typically the design process goes through a number of phases of laying out the design in which the mission-critical high-performance stuff is started first because it requires very tight control over the design and layout. Then it goes through a number of stages of laying out the memory and the analog, then somewhere — usually last on the list — they press ‘DFT’ in the EDA tools and structures get laid out automatically. Because it’s laid out last, it’s not uncommon for it to be ‘non-optimized’ since it goes through multiple metal layers, longer wires and more vias. This results in a sensitivity between design and process, and it’s natural that we’re seeing it first with DFT in the least optimized part of the design.”
Verigy’s Inovys Silicon Debug Solution for the V93000, showing a splat screen with compact test head.
1. Verigy’s Inovys Silicon Debug Solution for the V93000, showing a splat screen with compact test head.
The first time any semiconductor manufacturer knows whether or not they have a good or bad device is when it is put on a piece of ATE and undergoes its first wafer test. “At that stage, they’ve tested the part and identified it as good or bad, and if there’s an electrical fault, it will be identified there for the first time,” Ritchie said. “It’s very typical that our customers will take a couple of wafers, assemble a part and go through the retest process, log the failure data and fault simulation data, maybe move back into the design to do some layout extraction, then get into the world of physical failure analysis. What the industry has been asked to do is to enable analysis to take place at the point where the fault is observed.”One of the first products to address this is Verigy’s Inovys Silicon Debug toolset that is designed to enable real-time analysis at the observation of the fault while the device is still being probed on the ATE (Fig. 1). It can also take place on a package part, although Verigy recommends the wafer aspect because the sooner you find the problem, the faster you can fix it. Equally significant, the toolset is able to reduce the time required for fault detection and diagnosis (from two to three weeks to a matter of hours) by efficiently mapping electrical failures to physical defects on SoC devices.
The toolset also enables effective logic bitmaps (Fig. 2). In the upper left-hand side of Figure 2 is a wafer map in which you can log and map the performance metrics of each die on that particular wafer. Moving clockwise to the right-hand side, where there are issues on the die, you can exhibit the performance data in a 2-D scan map and then translate that into a physical view on the actual die. The next step is actually drawing the net view that represents the registers and flip-flops in the design between the metal connections (vias). This allows mapping of the wafer to physical die locations, and from there you can go quickly from an electrical failure to a logical fault to a physical defect on the die. The details about exactly how all this works is likely a matter of intellectual property (IP).
Wafer robots
March 1, 2008 at 3:53 pm | In Manufacturing | Leave a CommentTags: Animation, Equipment, Manufacturing
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