Applied Materials expects surge in Asian sales
By Bloomberg News
May 4, 2000, 12:45 p.m. PT
SINGAPORE--Chip equipment maker Applied Materials said sales in Singapore and Malaysia may more than double to as much as $800 million in the next year as foundries boost output to meet demand for chips for phones, cars and electronic games.
Sales in the two Southeast Asian countries in the next 12 months will total between $600 million and $800 million, up from about $300 million last year, chief executive Jim Morgan said at a news conference.
"The expansion of the Internet is creating huge demand for all kinds of semiconductor chips," Morgan said. "It's not only PCs anymore."
Demand for chips is booming as consumers worldwide buy more computers and mobile phones to access the Internet. Analysts estimate the semiconductor industry will expand by 20 percent to 25 percent this year.
Singapore chip exports rose 78.2 percent to S$1.7 billion ($990 million) in March. One of Applied Materials' largest customers in the region, chip foundry Chartered Semiconductor Manufacturing, is building a sixth plant in Singapore to keep up with demand.
Applied Materials shares will begin trading on the Stock Exchange of Hong Kong at the end of May, along with Microsoft, Intel, Cisco Systems, Dell Computer, Amgen and Starbucks.
"We have many investors in the region, mostly institutional investors that understand the industry," Morgan said. "This will open up the stock to ordinary people."
The Nasdaq Stock Market and the Hong Kong market agreed in December 1998 to make it easier for companies to list their shares in the United States and Hong Kong. The listings will allow Hong Kong investors to trade during their regular market hours in the local currency.
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