Japanese like AMAT's Prospects...
January 6, 1998
Tokyo Elec Shrs Down On Applied Materials Expansion News
TOKYO --Shares of Japan's Tokyo Electron Ltd.
(J.TKE or 8035), an electronics trading company, are sharply lower at midday Wednesday on the Tokyo Stock Exchange following a Nikkei report that Applied Materials Inc. (AMAT) of the U.S. plans to boost its development basis in Japan, traders said.
At the midday break, Tokyo Electron shares are down Y420, or 9.4%, at Y4,030 on volume of 547,000 shares.
The economic daily Nihon Keizai Shimbun reported Wednesday morning that Applied Materials, the world's largest maker of
semiconductor-manufacturing equipment, plans to expand its technology
center in Narita, Chiba Prefecture in the second half of 1998. It also said the U.S. company will construct facilities to develop and test manufacturing equipment for 300mm silicone wafers.
Tokyo Electron is the second largest company handling the equipment in the world after Applied Materials, with sales related to semiconductor-manufacturing equipment coming to roughly $2.16 billion.
Investors think Applied Materials' aggressive moves in Japan could hurt earnings at Tokyo Electron amid a slump in orders from South Korea, a market watcher said. |
