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

To: Proud_Infidel who wrote (33647)	1/6/2000 12:13:00 AM
From: Tony Viola	Respond to of 70976

Brian, this post is needed over on Intel right now. "There is a shortage of capacity in virtually every product area," he explains. In fact, the outlook is so bright that some chip equipment managers are starting to worry that IC growth could be too strong in 2000. This, they say, would result in a return to product glut conditions within a couple of years. "We'd rather see a long growth period instead of one of these quick jumps or spikes," declares Werner Rust, director of marketing at San Jose-based Silicon Valley Group Inc. That's not the end of the good news. "We now expect three very fat years," declares analyst Risto Puhakka, vice president of operations at VLSI Research. Chip equipment sales in 2002 are expected to grow 30% to $60 billion, he predicts, before they flatten out in 2003. "Capacity is very, very tight, and it will only get tougher to keep up with semiconductor demand," Puhakka notes. "We're already seeing the new fab announcements starting to roll in, and we haven't found any nasty surprises to spoil the party."