Japanese Companies Weakening, ST Exec Says
September 22, 1997, Issue: 1076
Section: News
By Jack Robertson
The chairman of SGS-Thomson Microelectronics Inc. last week predicted that Japanese companies' share of the global chip market will drop to 22% in 2002. Addressing the Semiconductor Equipment and Materials International (SEMI) annual dinner in Santa Clara, Calif., Laurent Bosson said Japan will continue to lose market share because of underinvestment and obsolete equipment. He said that in 2002, the North American chip industry will hold a 33% market share, the Far East (excluding Japan) will increase to 26%, and Europe will remain steady at 19%. In sizing up global competitors, Bosson said several Japanese chip makers, including Fujitsu Ltd., Hitachi Ltd., Matsushita Electric Industrial Co. Ltd., Mitsubishi Electric Corp., and Toshiba Corp., "have transitioned from semiconductor paradise to hell." On the other hand, Sharp Corp. and Sony Corp. "have transitioned from hell to paradise." Asked in an interview if ST's European parent is interested in acquiring Temic Semiconductors, a subsidiary of Daimler-Benz AG now on the block, Bosson replied: "We are building our own new fabs in Europe and will have more than enough capacity without trying to acquire Temic."
Copyright (c) 1997 CMP Media Inc.
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