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

To: Proud_Infidel who wrote (40453)	12/4/2000 10:16:55 PM
From: Proud_Infidel	Read Replies (2) \| Respond to of 70976

Taiwan chipmakers begin meeting on bleak note By Bloomberg News December 4, 2000, 10:20 a.m. PT HSINCHU, Taiwan--Quanta Computer, Acer and other bastions of Taiwan's computer industry started an annual meeting Monday on prospects for the semiconductor industry. Never has the outlook been so bleak. The two-day conference at Hsinchu Science Park--the cradle of the island's semiconductor industry--comes as the sector grapples with falling demand for chips, computers and technology stocks. Though the Taiwan Stock Exchange Electronics Index is down 55 percent from its year high in January, analysts say the worst is yet to come. "Valuations are still very high in this group," said Jonathan Joseph, a managing director at Salomon Smith Barney. "We think it's too early to go in and bottom fish despite the fact the stocks are down quite a bit." None of the companies attending the seminar have been immune to the decline in technology stocks. Even Taiwan Semiconductor Manufacturing, the world's biggest made-to-order chip company, lost a little of its luster when Merrill Lynch last month became the first company to downgrade its recommendation on the company from a "buy." Inventories "are at a four-year high at high-growth communication companies," Merrill analyst Dan Heyler said. He also cut ratings for TSMC's main rivals, United Microelectronics and Chartered Semiconductor Manufacturing. United Microelectronics on Friday repeated that it stands ready to support its stock, which has halved from its January high. Still, Morgan Stanley Dean Witter said Friday that chipmakers face an even tougher time going forward. "Semiconductor-based demand for personal computer and wireless remains weak, and economic growth is slowing, year over year," it said. Taiwan, in addition to chips, makes more than half of the world's computers. Quanta, the world's no. 2 maker of notebook computers, and Acer, the island's largest personal computer maker, are among Taiwanese firms making computers on a contract basis for U.S. companies such as Compaq Computer, IBM and Dell Computer. In attendance will be Kouji Ohboshi, chairman of NTT DoCoMo; Edward Brown, group vice president of Applied Materials; Rick Hill, chairman and chief executive of Novellus Systems; Acer Laboratories president Chin Wu and TSMC senior vice president Quincy Lin, according to organizers. Copyright 2000, Bloomberg L.P. All Rights Reserved.