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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (31805)	8/10/1999 12:39:00 PM
From: Ian@SI	Read Replies (1) \| Respond to of 70976

Just for BK, ;-) August 10, 1999 Taiwan Technology Firms' July Sales Beat Expectations By BAKER LI TAIPEI -- Most of Taiwan's largest technology companies disclosed better-than-expected gains in July sales, showing signs that clients are starting to build inventories as the traditional peak season nears, industry executives and analysts said. Looking ahead, demand for the local computer-related products could continue rising through to the end of the year from big multinationals looking for cheap, dependable supplies of quality computers, said analysts. "I'm a little surprised by these July sales reports. They did a good job even though the peak season hasn't yet really arrived," said Eric Lee, manager of a NT$2 billion ($1=NT$32.109) Shin Kuang Innovative Technology Fund at Taiwan Securities Investment Trust Co. "We bet their sales will continue to grow in the coming months." Quanta Computer Inc. (Q.QTC), Taiwan's biggest notebook computer maker and a major supplier to Dell Computer Corp. (DELL) and International Business Machines Corp. (IBM) of the U.S., reported Tuesday that July sales surged to a monthly record of NT$7.27 billion, more than double the NT$3.29 billion in July, 1998. Sales for the first seven months of the year grew 74% from a year earlier to NT$42.1 billion, it said. First International Computer Inc. (Q.FIC) said Tuesday July sales jumped to NT$3.4 billion, up 80% from NT$1.89 billion a year previously, and sales in January through July were NT$27.3 billion, 94% higher than NT$14.1 billion a year ago. Both of the companies attributed the jump in sales to the rising popularity of low-cost personal computers. Bolstered by good sales reports, the Taiwan Stock Exchange's subindex of technology shares soared 4.3% Tuesday, which helped to push the weighted price index up 241.59 points, or 3.4%, to 7269.60. Tech shares accounted for 82% of total trading Thursday. Listed companies at the Taiwan Stock Exchange were required to post their July sales figures by Tuesday. - Chip-Related Shares Seen Doing Well - Moreover, Acer Inc. (Q.ACE), the island's personal computer giant, said Monday July sales climbed to NT$9.06 billion, a 39% increase from NT$6.53 billion a year earlier, while sales for the first seven months of 1999 rose 52% to NT$74.64 billion. In addition, "order books are full.... We won't be disappointed in sales figures for the next (fourth) quarter," said Johnny Lee, assistant manager with President Securities Corp. Taiwan is the world's third-biggest maker of computer equipment and among the top five makers of semiconductors. Overseas computer companies, aiming to reduce costs, have increasingly turned to Taiwanese suppliers, which focus largely on contract manufacturing. Taiwan Semiconductor Manufacturing Co. (TSM), the world's largest dedicated chip foundry, said Monday sales soared 117% in July to a record NT$6.59 billion from NT$3.03 billion a year previously. Sales for January through July amounted to NT$36.32 billion, up 20% from NT$30.37 billion during the same period in 1998. Month-on-month, sales were up 15% from June levels, it added. TSMC said its capacity was fully utilized last month amid continued growth in the chip market. The sharp rise from June for TSMC was significant because analysts said large on-year gains were expected because of the low base period last year. Along with TSMC, other Taiwan semiconductor makers posted gains as well. Advanced Semiconductor Engineering Inc. (Q.ASE), the world's second largest independent chip packager, Tuesday said it posted a 50% jump in July sales to NT$1.5 billion from NT$1 billion a year earlier. Sales for January through July were NT$8.9 billion, up 13% from NT$7.86 billion a year earlier. Chipmaker United Microelectronics Corp. (Q.UME) saw sales surge 115% in July to NT$2.36 billion from NT$1.1 billion a year earlier. Sales for January through July were NT$15.96 billion, up 55% from NT$10.3 billion a year ago. "The picture for recovery in the semiconductor industry becomes clear," said Taiwan Securities' Lee, who said he will buy for his funds more chip-related stocks in the third quarter, based on their bright sales and earnings outlooks. The best bets for investors are Taiwan Semiconductor Manufacturing Co., United Microelectronics Corp. and Winbond Electronics Corp. (Q.WBE), suggested Lee. -By Baker Li;