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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Jim Oravetz who wrote (8317)	4/10/2000 11:28:00 AM
From: TI2, TechInvestorToo	Respond to of 10921

Thanks good idea. eom TI2

To: Jim Oravetz who wrote (8317)	4/10/2000 12:54:00 PM
From: Jim Oravetz	Respond to of 10921

At Semicon Europa, equipment suppliers face slow- and fast-ramp forecasts By J. Robert Lineback, Semiconductor Business News Apr 5, 2000 (7:43 AM) URL: semibiznews.com MUNICH -- What a difference a year makes. Semiconductor capital equipment and material suppliers showing their wares at Semicon Europa 2000 here this week are seeing a strong recovery in demand for new tools and technology from chip makers after disastrous years in 1997 and 1998. The European market for semiconductor production equipment fell 10% in 1997 and then dropped another 6% in 1998 before bouncing back up 14% to $3.24 billion last year. Based on estimates being presented at the annual trade show here, Europe's market for chip-making gear is expected to increases by 30-to-40% in 2000 more than $4 billion (see table below). Much of Europe's capital spending growth is being fueled by its own chip makers. STMicroelectronics, for example, is increasing its investments in new production capacity by 63% to $2.2 billion in 2000 from $1.39 billion in 1999. A more modest increase is set at Infineon Technologies AG of Munich, which is expected to invest about $1.2 billion in 2000--a growth of 10% from $1.09 billion in 1999. But that amount could be higher. Last week, Infineon announced plans to invest $1 billion to move 300-mm wafer processing to volume production in Dresden, Germany, within the next several years (see March 31 story). Philips Semiconductor in The Netherlands is currently expected to increase its investments by 4% to $950 million in 2000 compared to $915 million in 1999. Other European chip companies have earmarked about $400 million in investments, according to estimates presented at Semicon Europa. Most equipment makers admit that capital spending growth is much stronger outside of Europe, but investments in production on the continent are expected to grow at a healthy rate again next year as the global recovery continues. Officials for Semicon Europa's sponsoring trade group--Semiconductor Equipment and Materials International (SEMI)--is forecasting worldwide equipment sales of $30 billion in 2000, an increase of 20% from last year's $25 billion. Semiconductor materials revenues are expected to grow 14% to $25 million worldwide in 2000 compared to $22 billion in 1999, said SEMI. Services related to chip production systems will be up 13% to $18 billion from $16 billion in 1999, according to the group's current forecast. But SEMI also released a "fast-ramp" forecast, which shows equipment sales growing 44% to $36 billion in 2000, and then another 19% to $43 billion in 2001. Worldwide equipment sales will peak at $49 billion in 2002, if the fast-ramp forecast comes true, while chip tool revenues will reach a high point in the current business cycle of $48 billion in 2004 if the "slow-ramp" scenario plays out, according to SEMI. The fast-ramp forecast shows equipment sales dropping off faster and earlier at $46 billion in 2003 and $40 billion in 2004. Slow- & fast-ramp chip equipment forecasts Year Slow ramp Fast ramp 2000 $30 billion $36 billion 2001 $36 billion $43 billion 2002 $41 billion $49 billion 2003 $45 billion $46 billion 2004 $48 billion $40 billion Source: SEMI Jim