To: Steve 667 who wrote (16982 ) 12/6/2000 8:01:43 AM From: John F Beule Respond to of 60323 Strong chip demand seen Applied Materials CEO: diversification will keep companies viable December 6, 2000: 7:30 a.m. ET TOKYO (Reuters) - The head of the world's biggest chip-making equipment firm, Applied Materials, predicted Wednesday that global chip demand would stay strong, shrugging off investors' concerns the industry may have reached its peak. "Long-term demand for chips is good and a lot of our customers are very committed to keeping their investments going," Chairman and Chief Executive James Morgan told Reuters in an interview. Morgan said the chip industry had diversified into many more product types than in the past, and that therefore it was less vulnerable to swings in sales performance of particular products such as personal computers and mobile phones. He added chipmakers could expect a boost from broadband, a type of data transmission in which a single medium can carry several channels at once, as more companies will need to upgrade their chip equipment. AMAT EYES NASDAQ JAPAN The company has said it would be the first foreign firm to list on Nasdaq Japan, which was set up in July this year as a new section of the Osaka Securities Exchange, the nation's second-biggest stock market. Applied Materials' (AMAT: Research, Estimates) Japanese clients are poised to invest in new technology after a few years of restructuring, Morgan said. He said the company would debut on the Nasdaq Japan market for startups as planned despite the recent weakness in Japanese stock markets. "I think it will help (boost our stock price). It takes time for people to get comfortable with new things, particularly in Japan. But we have been here long-term, we are pioneers," he said. The company has said it would be the first foreign firm to list on Nasdaq Japan, which was set up in July this year as a new section of the Osaka Securities Exchange, the nation's second-biggest stock market. Shares in Applied Materials ended up $5 at $44 Tuesday in New York, powered by the U.S. Nasdaq market's more than 10 percent jump, its biggest one-day gain ever. LONG & STRONG John