Amy
gees, Grove told investors to ``keep the faith'' and said that five
to 10 years from now.....
Regards
-Albert
Intel Co-Founder Grove on Semiconductor Industry: Comment
3/6/1 17:34 (New York)
Santa Clara, California, March 6 (Bloomberg) -- Intel Corp.
Chairman and co-founder Andy Grove comments on the state of the
semiconductor industry during an interview with Lehman Brothers
Inc. analyst Dan Niles broadcast over the Internet.
Grove told investors to ``keep the faith'' and said that five
to 10 years from now, Intel will get about a third of its sales
from each of three markets: personal computers and handheld
devices, servers that run Web sites and databases, and networking
gear that connect the two groups.
On problems predicting the economic slowdown in the U.S.:
``The viciousness of the down cycle was made more so by all
the (supply-chain management software.) It blew through the supply
chain in a much faster ripple than previous cycles. Nothing in
supply-chain management can read minds. End demand is what end
demand is.''
On when demand could recover:
``I don't think end demand is going to snap back. For a
number of years, technology had a huge momentum. Over some period
of time, the investment cycle got ahead of itself. When demand
softened some, it exposed the fact that we have built out excess
capacity in the whole system. That leads to a slow recovery. I
don't think end demand is going to snap back. It is going to ease
back in a gradual fashion.''
On whether the U.S. slowdown will spread to Asia:
``The Asian market (decline in the late 1990s) didn't affect
the U.S., but the U.S. market is going to affect the Asian market.
It is not possible for the U.S. and Europe to have a softer end
demand cycle without it affecting some of the Asian export
activities.''
--Cesca Antonelli in the San Francisco newsroom (415) 743-3532, or
at fantonelli@bloomberg.net
Story illustration: For a graph of Intel shares over the past
year, see {INTC US <Equity> GP D <GO>}.
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