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Technology Stocks : Neomagic Corp. (NMGC)

NMGC 0.00730

-43.4%

Nov 7 9:54 AM EST

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To: James Wright who wrote (2907)	5/3/1999 9:42:00 AM
From: SIer formerly known as Joe B.	Read Replies (1) of 3645

Fabless chip suppliers face tightening wafer supply A service of Semiconductor Business News, CMP Media Inc. Story posted 3:45 p.m. EST/12:45 p.m., PST, 4/30/99 By Crista Souza SAN JOSE (ChipWire/EBN) --Cheap and abundant processed silicon may soon be a thing of the past, as demand for semiconductor wafers threatens to outstrip the industry's IC-fabrication capacity, warn some chip analysts. Concerns are growing in the wake of projections that wafer requirements by fabless chip companies will increase 43% in 1999 over last year's consumption rate. A total of 1.5 million processed wafer will be needed by fabless companies, according to a new survey of those chip suppliers. The bulk of that growth--27%--is expected to occur in the first half of the year. This anticipated increase in demand, coupled with the tendency of integrated-device manufacturers (IDMs)--such as Motorola, Philips, and Toshiba--to rely on foundries for a greater portion of their semiconductor production, means competition for fab space may be intense.

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