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

To: cluka who wrote (32469)	9/14/1999 11:38:00 AM
From: Ian@SI	Read Replies (1) \| Respond to of 70976

September 14, 1999 Applied Materials CEO: Sees Semiconductor Output Rising SEOUL (Dow Jones)--Semiconductor production worldwide is expected to more than double in the next few years on brisk demand for computers and other equipment, said James C. Morgan, chairman and chief executive of Applied Materials Inc. (AMAT) of the U.S. During a press conference in Seoul Tuesday, Morgan said computers/servers, mobile phones and video game controllers are expected to be the main forces that will help increase semiconductor demand. Morgan said the growing number of Internet users is also expected to help increase chip production. On the recent rise in semiconductor prices on the global spot market, Morgan said this was largely due attributed to the reduction in production in the past few years by chip makers to cope with overcapacity, Morgan said. "There has been about 30% overcapacity in the market," said Morgan. "Although there was demand for semiconductors, there was excess capacity." Morgan added that he expects a balance in supply and demand of semiconductors in the coming years. According to recent local news reports, spot-market prices of the mainstream 64-megabit DRAMs (dynamic random access memory chips) rose to about $15 per unit after hovering around $4 in June this year. Applied Materials is the world's largest supplier of wafer fabrication systems and services to global semiconductor companies including South Korea's Samsung Electronics Co. (Q.SSE) and Hyundai Electronics Industry Co. (Q.HEL). -By Park Kyung-hee