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Politics : Formerly About Applied Materials

AMAT 322.32

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Jan 30 9:30 AM EST

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To: Proud_Infidel who wrote (42377)	2/20/2001 5:54:56 PM
From: Proud_Infidel	Read Replies (1) of 70976

Online chip sales to exceed 38% of total by 2003, says report Semiconductor Business News (02/20/01 07:58 a.m. PST) SCOTTSDALE, Ariz.--More than 38% of semiconductor sales will be conducted online using electronic-commerce software by 2003, according to a new report from Cahners In-Stat Group here. Subject 50522 The research group predicts that e-commerce transactions for the chip industry will surge to $104.6 billion worldwide in 2003 from just $19.6 billion in 2000. Online chip sales represented 9.3% of total semiconductor revenues in 2000, estimated In-Stat. A key aspect of e-commerce in electronics is the potential for design engineers to reduce product development cycles by cutting the time it takes to find semiconductors for new systems, noted In-Stat. The research group noted that initial implementations of e-commerce systems often just put buyers and sellers in contact with each other via the Internet. "Ultimately, e-commerce will enable multi-company integration of the entire supply chain from product design to end product servicing," predicted Steve Cullen, director of In-Stat's semiconductor service unit. Currently, there are about 100 "e-marketplaces" serving the computer and electronics industries, according to In-Stat. The research group--along with other industry observers--predicts a major shakeout will hit the semiconductor e-commerce segment in the next year or two. Already in 2001 a number of e-commerce operations have cut back, including layoffs at eChips Inc. (see Feb. 15 story) as well as VerticalNet Inc. and PartMiner Inc. (see Jan. 19 story).

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