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

To: Gottfried who wrote (33041)	11/3/1999 5:21:00 PM
From: Paul V.	Read Replies (2) \| Respond to of 70976

Gottfried, Yes. I am 110% in the market. I am in CSCO, LU and EM€. Paul

To: Gottfried who wrote (33041)	11/3/1999 5:23:00 PM
From: Donald B. Fuller	Respond to of 70976

Here's one to warm the hearts of the semi and semi equip holders.. ------------------------------------------------------ Daily news for semiconductor industry managers Dataquest warns capital spending won't keep up with chip demand Electronic Buyers' News (11/02/99, 06:45:21 PM EDT) INDIAN WELLS, Calif.-- Capital spending in the semiconductor industry will kick into high gear in the latter part of next year and will continue at a rapid rate through 2003. But the turnaround won't be fast enough to meet growing demand for semiconductors, Dataquest predicted at its annual conference here this week. Chip makers, which chalked up just $29.5 billion in capital spending and fab equipment this year (down from $44.9 billion in 1996), will lay out more than $35 billion next year, $53.4 billion in 2001, and $64.5 billion in 2002, said Datquest analyst Clark J. Fuhs. "We expect modest [spending] growth until the third quarter of next year, and then we will enter a very high-growth environment," he said. South Korean and Taiwanese companies--particularly Taiwan's foundries--will account for a large portion of the spending increases in the next two years. Dataquest predicts Korean companies to increase capital spending by more than 20% this year, to $2.4 billion, but Fuhs noted that this is far lower than the $7.4 billion they spent in 1996. Japan, meanwhile, cut spending by 10% to 15% this year, while U.S. and European companies increased capital outlays by 3% to 5% in 1999, Fuhs said. Semiconductor supply, which has outstripped demand for the last three years, will be constrained in 2000, when a major DRAM shortage should kick in and continue for several quarters, Dataquest said. Foundries will also experience tightened capacities beginning in early 2000 and through 2003, as more chip makers adopt the fabless semiconductor model. Foundry revenue will grow an average 20.5% a year between 1998 and 2003, when it will reach more than $13 billion, Fuhs said.