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To: Yaacov who wrote (110847)	9/22/2000 2:55:55 PM
From: AK2004	Respond to of 186894

Yaacov, all thank you and yet another interesting article that relates to demand for intel Regards -Albert First International Says AMD Gains at Intel's Expense (Update2) 9/22/0 1:27 (New York) First International Says AMD Gains at Intel's Expense (Update2) (Adds analyst comments in fifth and 12th paragraphs.) Taipei, Sept. 22 (Bloomberg) -- First International Computer Inc., one of Taiwan's top-three computer makers, said it increased purchases of processors from Advanced Micro Devices Inc. because its main supplier, Intel Corp., can't keep up with demand. Intel has acknowledged problems meeting customer orders. AMD opened a new factory in Dresden, Germany and expanded production at a plant in Austin, Texas, to increase market share. ``AMD now represents about 30 to 35 percent of our production,'' said sales department director Ralph Liu, higher than before. ``It looks like AMD's share may be increasing in the future.'' Intel's switch to making smaller chips may be partly to blame for its lower sales expectations, according to Warren Lau, an analyst with HSBC Securities in Singapore. ``Their migration from 0.25 micron to 0.18 micron technology has not been very smooth,'' Lau said. By using finer circuits in chips, semiconductor makers can lower their production costs. Still, migration from one production technology to another can take months, requiring the addition of new equipment in production lines. No Intel officials in Asia were available for comment. Intel on Thursday said sales in Europe may fall short of expectations this year. It didn't specify how short. Intel's shares tumbled as much as 30 percent in overnight trading. FIC's sales in Europe are currently about 10 percent lower than expectations, Liu said. ``Usually sales start to pick up dramatically in August, but that hasn't happened this year,'' he said. Orders for personal computers at Taiwan manufacturers, which account for over 60 percent of the world's production, are falling below expectations, according to analysts. ``We're way below consensus on personal computer shipments,'' said Don Floyd, head of Asian Technology Research at CLSA Global Emerging Markets. ``Here we are in the third week of September, and people are still waiting for a magical pick up in demand.'' Taiwan computer makers generally see orders increase during August and September as customers such as International Business Machines Corp. and Hewlett-Packard Co. increase inventories in preparation for the back-to-school and holiday seasons at year's end. FIC's Liu agreed in part with Floyd's view on slower-than- expected sales, attributing most of the weakness in demand to Europe. ``There has been weakness in the Euro,'' he said. ``People may be holding on to their money in anticipation that the Euro will rise.'' Overall, FIC's global sales are growing by about 30 percent over last year, Liu said. FIC fell by as much as NT$0.8, or 5 percent, in early trading today.