To: Robert O who wrote (32235 ) 8/23/1999 6:49:00 PM From: Proud_Infidel Respond to of 70976
Taiwan Emerges As Big Client of Applied Materials August 23, 1999 (TAIPEI) -- Applied Materials Inc., the largest maker of IC production equipment, reported a 140 percent rise in its third-quarter orders, and its business with Taiwan-based clients is increasing rapidly. James C. Morgan, president of Applied Materials, said the semiconductor wafer industry is seeing a recovery. He noted that the global semiconductor equipment market could double in the next five years. Taiwan's semiconductor industry was a major contributor to the company's third-quarter growth. Applied Materials said that third-quarter orders from Taiwan increased 207 percent from the same period in 1998. Orders from U.S. clients accounted for 28 percent of Applied Materials' total. Taiwan is the company's second largest market, (26 percent), followed by Europe (16 percent) and Japan (16 percent); South Korea (8 percent), and Southeast Asia and China (6 percent). Morgan explained that wafer manufacturers are now in the early phase of recovery. This, plus a reduction in inventories, has stimulated system makers' demand for all types of products. Also, output of 0.18-micron products is still in the process of expanding. Statistics from the Taiwan branch of Applied Materials show that global semiconductor makers' capital spending fell by 27.6 percent in 1998. This year, capital spending is expected to grow 6.4 percent, and next year, the figure will likely rise 18.8 percent. Demand in the semiconductor industry for initial-stage manufacturing equipment fell 23.3 percent last year. Yet this year, it's expected to rise 12.8 percent, and in 2000 the growth is expected to reach 13.1 percent. Global semiconductor production is projected to grow 12.2 percent this year, an executive at Applied Materials' Taiwan branch said. He added that the driving force behind the growth lies in the brisk demand for communication products, consumer products, servers and workstations. (Commercial Times, Taiwan) nikkeibp.asiabiztech.com