AMAT & Tokyo Electron note upturn..
Tokyo Electron Rises on View Chipmakers May Increase Spending
2003-11-12 19:23 (New York)
Nov. 13 (Bloomberg) -- Shares of Tokyo Electron Ltd., the
world's second-largest maker of semiconductor equipment, rose as
much as 5.9 percent on optimism that chipmakers may increase
spending on new equipment amid a surge in demand.
The gain in Tokyo Electron's shares follows comments from
market researcher Gartner Inc. yesterday that worldwide computer-
chip sales will rise 20 percent next year to their highest since
2000. Also fueling optimism, Applied Materials Inc. reported its
first quarterly profit in a year as orders climbed.
``The chip industry is recovering,'' said Scott Foster, an
analyst at Lehman Brothers Japan Inc. who has an ``equal
weight/positive'' rating on Tokyo Electron. ``Some investors will
react to Applied Materials's announcement, although they don't
need to be reminded'' Tokyo Electron has a bright outlook.
Applied Materials, the world's biggest maker of computer-
chip production equipment, yesterday said it had fourth-quarter
net income of $15.5 million, or 1 cent a share, in the period
ended Oct. 26 and predicted orders will surge this quarter as its
customers upgrade plants.
Tokyo Electron's shares rose 450 yen to 8,230 as of 9:20
a.m. in Tokyo Stock Exchange trade, bringing this year's gains to
53 percent. Other suppliers of equipment to the chip industry
also rose. Advantest Corp., the world's biggest maker of
equipment to test memory chips, gained 400 yen, or 5 percent, to
8,430.
Orders Rising
Applied Materials's remarks mirror those of Tokyo-based
Tokyo Electron, which last month said orders rose last quarter,
prompting the company to raise its annual profit forecast.
The gain in orders is the latest sign semiconductor makers
such as Intel Corp. and Samsung Electronics Co. are preparing to
increase production in anticipation that their customers will
need more chips in coming months.
Tokyo Electron's orders on a group company basis rose to
126.2 billion yen in the July-to-September period, from 91.5
billion yen a year earlier.
Gartner predicts semiconductor industry sales will rise to
almost $210 billion next year, their highest since peaking at
$222 billion in 2000. The researcher also forecast that sales
will rise 12 percent this year to $174 billion. |
