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

To: SJS who wrote (32715)	10/4/1999 1:24:00 PM
From: Proud_Infidel	Respond to of 70976

Applied Materials sees challenges in China HONG KONG, Oct 4 (Reuters) - U.S.-based semiconductor equipment maker Applied Materials Inc said on Monday it saw great challenges in China, especially concerning infrastructure, and the company expected China to become its major market in future. Chairman James Morgan said in a presentation the challenges concerned the Chinese mainland's infrastructure because semiconductor factories needed high purity water systems, reliable power supplies and good construction techniques. Morgan said he expected semiconductor demand growth in China to exceed world growth. Applied Materials, which has technology centres in Japan, Korea, Taiwan and a technical training centre in Singapore, hopes to put a technology centre in China but has no current plan to set up a manufacturing facility there, Morgan said. ''Although we think China could be a major market for us, it is difficult for us to predict when, but I think during the next 10 years...people will make significant investment there,'' he said. Applied Materials said its 1998 revenue was at US$4.04 billion and investment in research and development amounted to US$2.21 billion in the last five years. The company's new orders amounted to US$4.56 billion between fourth quarter of 1998 and third quarter of 1999, in which North America accounted for 35 percent, Taiwan 20 percent, Japan 17 percent, Europe 15 percent, Korea seven percent, and South East Asia and China six percent. Morgan said the South East Asia and China region would grow faster than Japan. He added that the quake in Taiwan had had no impact on its production. The company's capital investment was estimated to increase to US$57.2 billion by 2003 compared with US$28.2 billion in 1998.