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Technology Stocks : ASML Holding NV

ASML 1,423

-2.2%

Jan 30 9:30 AM EST

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To: niek who wrote (1074)	1/26/2006 1:42:08 PM
From: niek	Read Replies (1) of 43297

STMicroelectronics increases capital spending for advanced process capacity expansion. Thursday, 26 January 2006 During a lengthy financial analyst conference session to discuss the company's fourth quarter and year end financial performance, STM executives announced that the company would be increasing capital expenditure in 2006, to $1.8 US dollars, up from $1.5 billion in 2005. However, sources attending the conference in Paris told Semiconductor Fabtech that much of the capital expenditure will be allocated to increasing the production of leading-edge devices both at the 65nm node for logic chips and NOR Flash memory. NAND Flash production will also increase with a 60nm designated node for Flash memory devices being started. Funds will also be channelled into increasing IC testing functions. Crolles2 (300mm) as well as STM's leading-edge 200mm fab in Rousett, France will receive funding to migrate technology nodes and increase production in 2006, sources noted. The Rousett fab will increase production of NOR Flash, which is currently producing 80 percent of STM's sales of this device as well as begin the migration to 65nm processing in the second half of 2006.

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