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To: Don Green who wrote (61968)	11/28/2000 7:13:01 PM
From: Don Green	Respond to of 93625

Electronics Companies Foresee Lower Chip Earnings Wednesday, November 29, 2000 TOKYO (Nikkei)--Japan's top five electronics giants are beginning to see a slowdown in earnings from semiconductors. Hitachi Ltd. (6501) and Mitsubishi Electric Corp. (6503) expect the second-half operating profit from their semiconductor businesses to fall by 41% and 55%, respectively, compared with the first half of the fiscal year. Toshiba Corp. (6502) anticipates a 10% decline, while NEC Corp. (6701) expects the figure to remain roughly flat. A Mitsubishi Electric Corp. executive says, "shipment volume will increase, but we have discounted the risk that prices will decline." From spring onward, personal computer manufacturers moved up their chip procurements out of their concerns that supplies would be insufficient. Now the global market balance has loosened, and the DRAM market has been rapidly deteriorating since September. Although all of the companies have reduced DRAMs as a proportion of their business -- making the damage less severe than in the past -- they are still unable to escape the "silicon cycle." However, with first-half results far exceeding expectations, all five of the companies, including Fujitsu Ltd. (6702), have revised up their full-year earnings forecasts for this business segment. (The Nikkei Financial Daily Wednesday edition)