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Technology Stocks : Eaton (ETN) is definitely not overvalued! -- Ignore unavailable to you. Want to Upgrade?

To: go4it who wrote (210)	10/2/1999 11:30:00 PM
From: Walter Morton	Read Replies (1) \| Respond to of 338

Chip sales grow 3.5% sequentially, 22% year over year Oct 01, 1999 --- Worldwide chip sales surged 3.5 percent sequentially and 22 percent year-over-year to $11.96 billion in August, the Semiconductor Industry Association (SIA) reported today in its global sales report. Japan and Asia led the way with 31.7 percent and 30.1 percent growth, respectively. The Americas market posted a solid 18.1 percent increase over last year, while European sales increased a modest 9.9 percent. All four major chip markets enjoyed three percent or better growth in the August period with Europe showing the highest month-to-month growth of 3.9 percent, followed by the Americas' 3.5 percent, Asia Pacific's 3.4 percent and Japan's 3.1 percent. Three-month moving average sales improved 7.8 percent for Japan, 7.2 percent for the Americas, 5.8 percent for Asia Pacific and 1.5 percent for Europe. The PC market provided a truly a-typical twist to the figures. Historically, the PC market produces sluggish sales in the third quarter, according the trade group. With PC's still the leading consumer of chips, sluggish PC sales equal smaller chip sales. This year, the SIA cited figures from International Data Corp. that support third quarter unit demand for PCs not only increasing 25 percent vs. the year ago period, but showing a 7 percent sequential surge above second quarter demand. The spot market for DRAMs is up substantially, double its mid-year point, according to GartnerGroup's Dataquest. This figure is likely to rise or at least sustain itself in the near term, due to lingering uncertainty related to last week's earthquake in Taiwan. With the bulk of the world's motherboards and perhaps 10 percent of its chips produced in Taiwan, the recent earthquake seems assured of having some effect on the chip industry's September and perhaps October sales figures. "In the short term there could be some supply implications, but no long term impact," said an SIA spokesperson. The SIA's global sales report is a three-month rolling average of sales activity tabulated by the World Semiconductor Trade Statistics (WSTS) organization. Copyright ¸ 1999 Cahners Business Information, A Division of Reed Elsevier, Inc.