SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 155.00-5.0%3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Sam Citron who wrote (3328)11/11/1997 1:13:00 AM
From: molemania  Read Replies (2) of 10921
 
So the fear is both overcapacity and SE Asia at the moment? If SE Asia can't fund the fabs in the near future, wouldn't basic economics dictate that some other region (Europe, Latin America...) will take up the slack, assuming there is still good demand for chips? I am sure it is not that simple. Also, EGLS is holding up fairly well. Is that because it is so close to book or that they don't have SE Asia exposure or something else?

Thanks
Dave

from 10/24

UBS Securities Inc. analyst Mark FitzGerald lowered his
investment ratings on much of the equipment sector due to fears
that the Asian currency crisis will lead to capital spending cuts
among Japanese, Korean and Taiwanese chip-makers. Those
companies, which include Samsung Electronics Co., Toshiba
Corp. and NEC Corp. (NIPNY), account for a combined 54% of
total worldwide spending on semiconductor equipment in 1997,
he said.

Asian chip companies, he believes, have built up too much
production capacity. The glut of equipment will likely reduce
demand for the sophisticated semiconductor gear from
KLA-Tencor, Applied Materials and others within the next six to
12 months, he predicted.

"We've overspent," FitzGerald said. "There's too much capacity
out there."
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News