Top Taiwan chip, PC makers see strong overall sales
TAIPEI, Sept 25 (Reuters) - Taiwan's top chip and computer companies sought on Monday to reassure increasingly edgy investors with heady growth forecasts and plans to diversify beyond the slowing personal computer market.
While a few companies admitted to weaker third quarter sales because of worse-than-expected ``back to school'' sales in the United States, most painted a picture of still robust growth in emerging markets and for chips used in mobile phones, personal digital assistants and other gadgets.
Acer Inc , the island's largest personal computer maker, told a news conference that it had recently lost T$20 billion (US$994 million) in orders.
But the company said later it expected flagging sales would show a clear improvement from the fourth quarter.
``We have a lot of capacity. We are even thinking about expanding next year,'' Acer vice president Philip Peng told the news conference organised by Taiwan's Finance Ministry.
Its U.S. unit was nearly at breakeven point, Peng said.
Acer and eight other major chip and PC makers were trotted out by the Finance Ministry to clarify the industry's outlook after a sales warning last week from Intel Corp, the world's largest memory chip producer.
The warning hit tech stocks around the globe and drove semiconductor shares sharply lower in Taiwan, home of some of the world's biggest chip and computer companies.
Despite the lost order, Acer said it still believed there were many opportunities in original equipment manufacturing and painted a rosy picture of a sales recovery.
An Acer statement issued after the news conference said it expected PC sales to China alone to grow by 200 percent on the year.
Acer said it would become the third largest notebook maker and the fifth largest desktop computer manufacturer in the world's most populous nation this year.
The company said its shares were seriously undervalued as it expected an average earnings per share (EPS) of over T$3 (US$0.10) in the next 5-10 years.
Acer shares ended the day up T$0.70 at T$34.60.
A spokesman for world microchip foundry leader Taiwan Semiconductor Manufacturing Corp (TSMC) (NYSE:TSM - news) said Intel had not cancelled any orders with the company.
Taiwan's other major chip makers said they, too, were rapidly diversifying into faster-growing areas because of the PC growth slowdown.
Mosel Vitelic , which makes dynamic random access memory (DRAM) chips, said that while global desktop computer shipments surged 22 percent last year, some analysts expected growth to slow to 16 percent in 2000 and seven to eight percent in 2001.
Mosel vice president Thomas Chang said the company could post a small sales downturn in the next few months but said it was on track to meet its 2000 profit target of T$11 billion on sales of T$35.6 billion.
``A lot of people might think this kind of change might have a very, very large impact on the DRAM industry,'' Chang told the news conference.
``In terms of component companies like us, especially in DRAM, dependence on PCs will fall to less than 50 percent in the next one or two years,'' he said.
Spokesmen for Mosel and fellow DRAM maker Winbond said they expected recent DRAM price weakness to be short-term.
``Right now we are at full capacity and actually we are looking for a contract manufacturer,'' said Winbond spokesman Hander Chang.
``Our stockpiles are also at a reasonable level and we haven't seen any increases.''
Mosel shares ended down T$2.80 at T$38.60 with Winbond off T$4 at T$54.50.
biz.yahoo.com
+++++++++++
Taiwan's TSMC says Intel impact limited
TAIPEI, Sept 25 (Reuters) - World microchip foundry leader Taiwan Semiconductor Manufacturing Corp (TSMC) (NYSE:TSM - news) said on Monday a sales warning last week by Intel Corp (NasdaqNM:INTC - news) would have limited impact on it.
``The impact of Intel is limited,'' a TSMC spokesman told a news conference. ``There has been no cancellation of Intel orders.'' He gave no further details.
The news conference was called by Taiwan's finance ministry to clarify the technology industry's outlook after the sales warning by the world number one chipmaker drove Taiwan semiconductor shares sharply lower on Friday.
By 0310 GMT on Monday, TSMC shares fell T$0.50 to T$106.00.
biz.yahoo.com |
