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To: Proud_Infidel who wrote (35743)	7/13/2000 1:05:46 AM
From: Jeffrey D	Read Replies (3) \| Respond to of 70976

Korea chip equipment imports double in May. Jeff << THE KOREA HERALD: CHIP EQUIPMENT IMPORTS MORE THAN DOUBLE 100% match; The Korea Herald ; 13-Jul-2000 12:00:00 am ; 317 words Imports of semiconductor fabrication equipment surged recently by over 100 percent, owing to an unprecedented boom in chip exports, the Ministry of Commerce, Industry and Energy said yesterday. In May, Korea imported $395 million worth of semiconductor fabrication equipment, up 117 percent on year, the ministry said. During the first five months of this year, imports of the semiconductor-manufacturing equipment totaled $1.49 billion, more than twice the amount compared to the $629 million recorded during the January to May period of last year. Korea relies almost entirely on the United States and Japan to import semiconductor fabrication equipment. In May of this year, Korea imported $216 million worth of equipment from the U.S. and $129 million worth of products from Japan. The ministry attributed the increase in imports to the rising demand among foreign semiconductor manufacturers who have set up production bases in Korea, while domestic producers are also rushing to boost production capacity. "Since it costs too much for domestic manufacturers to develop their own production equipment, it will be advisable for them to bring in expertise of foreign manufacturers," a ministry spokesman said. Korea reported a $2.8 billion deficit last year in semiconductor trade with the United States and Japan, the Ministry of Commerce, Industry and Energy said yesterday. Domestic manufacturers exported $5.1 billion worth of semiconductors to the U.S. from January to November of last year, the ministry said. Over the same period, semiconductor imports from the U.S. reached $6.4 billion, amounting to a trade deficit of $1.3 billion. Also from January to November of last year, Korean semiconductor exports to Japan totaled $1.7 billion, while imports amounted to $3.2 billion, leading to a trade deficit of $1.5 billion, the ministry said. Korean semiconductor exports to the U.S. reached an all-time record high of $8.2 billion in 1995, leading to a $5.1 billion surplus. But semiconductor exports to the U.S. have been declining each year. In contrast, semiconductor imports from the U.S. have increased over the last four years, rising from $3.1 billion in 1995 to $5.6 billion in 1998. Since 1998, Korea has seen two straight years of deficit in semiconductor trade with the U.S. Semiconductor trade with Japan broke even in 1995, with imports and exports both totaling $3 billion. However, in 1996, Korea saw an $800 million deficit, which grew to $900 million in 1998.

To: Proud_Infidel who wrote (35743)	7/13/2000 2:49:47 PM
From: Mephisto	Read Replies (1) \| Respond to of 70976

Anlayst's thoughts on semi-conductor cycle. Excerpt form Hardware highlights by Piper analyst Kumar By Janet Haney, CBS.MarketWatch.com cbs.marketwatch.com Excerpt follows Some of the factors that are driving above-trend-line growth rates in the semiconductor cycle that I believe are multi year are as follows: you have broadband access, wireless, consumer and industrial computing. So, this demand cycle is much broader and more durable than the prior cycles because of the multiplicity of the end market, geographies and applications. CBSMW: Should long-term term investors be concerned with the daily ratings and estimates calls from Wall Street analysts? Kumar: What people need to step back and look at is the long-term trend line. There will be oscillations around the trend line, so there would be issues, geographic strengths and weaknesses, product introductions or lack of and so on. The key question that we need to ask: ‘Is that just an oscillation or is it impacting the trend line?’ That’s what the individual investor needs to ask. What people don’t recognize is that these stocks find their own center of gravity. Rating changes, earnings estimate changes, may impact the stock for a very brief transitory period, but over the long run, the stocks find the true value, the center of gravity, in respect to, of an analyst comment or not. CBSMW: What is your overall outlook on the PC and chip sector ahead of earnings? Kumar: I’m in a unique position, because I cover the whole food chain - the product suppliers as well as end system manufacturers. What we are seeing for the second half, is very strong demand worldwide. PCs,communication, wired and wireless, customer premise, INFRASTRUCTURE EQUIPMENT-- so it’s a broad-based demand driver. That’s why we think this up cycle is much more durable than the prior cycles.