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Technology Stocks : Broadcom (BRCM)
BRCM 54.670.0%Feb 9 4:00 PM EST
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To: edamo who wrote (5403)2/8/2001 11:57:03 AM
From: Stoctrash  Read Replies (2) of 6531
 
ed...it's that TSM news that scares me on the big picture:
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thestreet.com
And what is the reading? Nothing good, at least not for a while. "I don't want to call 2001 a throwaway year, but it's pretty bad," said Pelayo, who covers semiconductor equipment makers for the brokerage.

In its earnings call yesterday, Taiwan Semiconductor's CEO, Morris Chang, said the company expects a breathtaking drop in business: from last year's rate of having more than 100% of its wafer-making capacity in use to an expected rate of 70% for the coming two quarters. Chang forecast that the slump will last through the second quarter, although he acknowledged that the ability to forecast even that far was limited. TheStreet.com's George Mannes recently wrote a story looking at how tech companies are having a harder time making forward-looking projections .

Chang's model has orders in the semiconductor industry picking up in June and finishing the year strongly. But not everyone is so sure. J.P. Morgan analyst Lucas Ward wrote a note this morning that Taiwan Semiconductor's customers might be predicting an uptick in business on an "unrealistically rapid recovery" of the U.S. economy. Taiwan Semiconductor was lately off 2% to $20.16. It's 52-week low is $16.12.

Chang also announced that his company would slash its capital spending for equipment by 29% to $2.7 billion. This is not good news for equipment makers such as Applied Materials (AMAT:Nasdaq - news), KLA-Tencor
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