Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: Black-Scholes who wrote (46036)	10/13/1999 11:34:00 AM
From: Stoctrash	Read Replies (2) \| Respond to of 50808

This might have added some downside fluff... I found this on the SNDK thread..oUCH! ft.com The damage to semiconductor-making equipment during the earthquake in Taiwan last month may have been much worse than first thought and could affect supplies of personal computers during the peak Christmas and new year periods, according to Japanese industry executives and analysts. Although Taiwanese manufacturers of PC motherboards have said they expected to resume production imminently, damage to facilities making some of the essential components of these PC circuitboards, particularly graphic chips, sound chips and memory control chip sets, has been substantial, Japanese chip buyers say. Taiwanese suppliers had originally expected to resume production only two to three weeks after the earthquake on September 28. But their Japanese customers now believe it could take two to three months before shipments begin and as long as five months for supplies to reach pre-earthquake levels. For example, Naoyuki Akikusa, president of Fujitsu, told investors recently he did not think TSMC, the Taiwanese maker that supplies the Japanese electronics group, would be able to resume full production within the next two months. Another Japanese electronics group thinks only 10 per cent of 28 production lines at the Hsin-chu City Science Park, escaped undamaged. The disruption is likely to cause serious problems for the world's PC industry, which has been scrambling to obtain supplies of these key components. Taiwan makes 21 per cent of video cards, 31 per cent of graphic cards and 48 per cent of sound cards, according to Schroders, the UK brokers. Advanced Micro Devices, a US chip maker, has warned that shortages of some PC components have halted production of circuitboards incorporating the US company's microprocessor chips, its primary product. The production bottleneck appears to be caused by damage to the manufacturers' chemical vapour deposition furnaces, which contain large delicate quartz tubes. Japanese electronics groups say many of the installed tubes have shattered. Worse, much of the replacement stock, held on site, is also damaged. Leading Japanese suppliers of quartz tubes report the backlog of orders has surged from 100 to 400 and they cannot meet demand. Clearing up production lines is likely to take months, the Japanese industry analysts say. When the North Itami plant of Mitsubishi Electric was damaged in the January 1995 earthquake in Kobe, it took a month before production was resumed. Also, there is a shortage of skilled technicians in Taiwan to make repairs.