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Politics : Formerly About Applied Materials

AMAT 222.56

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12:06 PM EST

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To: Ian@SI who wrote (36048)	7/26/2000 9:44:38 AM
From: Proud_Infidel	Read Replies (1) of 70976

From Infineon's quarterly report: Outlook Infineon expects its capital expenditures for this fiscal year to be about 25 percent of revenues; this should increase to around 30 percent in the next fiscal year to take full advantage of the continuing growth dynamic of the semiconductor market. The company plans to expand its production capacity by speeding up the conversion of older lines from 6 to 8 inch wafer production, following an aggressive shrink roadmap to smaller geometries and outsourcing more product fabrication to silicon foundries and subcontractors. This should especially accelerate Infineon's production output for logic components. ``On the R&D side, Infineon will invest in future wireless standards such as Bluetooth and UMTS to improve its market position in mobile communications,'' commented Ulrich Schumacher. ``In addition, the company will further strengthen its intellectual property position in the fast growing market for broadband communications by focusing resources internally and through acquisitions. We will also look to divest smaller, non-core activities.'' Increasing memory prices as well as productivity gains are likely to lead to an improved fourth quarter. On the revenue side, Infineon is well positioned to grow faster than the market in both fiscal year 2000 and 2001. The World Semiconductor Trade Statistics forecasts revenue growth of over 20 percent for the worldwide semiconductor industry in 2001. biz.yahoo.com

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