Applied Materials says customers wary on spending
July 29, 2003 05:17:52 (ET)
TAIPEI, July 29 (Reuters) - Applied Materials Inc (AMAT,Trade), the world's largest maker of microchip-making equipment, said on Tuesday customers were cautious on spending, but that a trend toward the next generation of technology was in place.
"The signs are still weak, and our customers are very very cautious on capital spending right now," said Chief Operating Officer Michael Splinter, during a stopover in Taiwan to visit customers.
However, Splinter said demands for performance, features, power and cost could drive his customers to go to the next generation of technology.
"Those four vectors are strong forcing functions across almost every product in our industry to keep moving to the next generation of technology," said Splinter.
"The market trend is there, strongly there."
Customers such as Taiwan Semiconductor Manufacturing Co (TSMC) (TSM,Trade), the world's largest contract microchip maker, have beaten rivals in winning high-priced orders for cutting-edge products due to better progress in shrinking circuits.
Last week, TSMC ((2330.TW)) posted second-quarter net profit that grew 26 percent from the same period a year ago -- above market expectations -- as customers launched advanced new products.
In the fourth quarter of last year, Taiwan contributed 39 percent of Applied Materials' total orders, more than double the percentage for its number two market in North America.
Thanks Gottfried! I'm off to check those sites out.
RtS |
