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To: Elmer who wrote (123986)	1/2/2001 12:21:19 PM
From: Road Walker	Respond to of 186894

Gartner cuts chip view, ST to grow Researcher to cut its 2001 chip sector growth estimate By Madeleine Acey, FTMarketWatch Last Update: 12:13 PM ET Jan 2, 2001 LONDON (FTMW) - Computer market researcher Gartner Dataquest (IT: news, msgs) said on Tuesday it plans to cut its estimate for 2001 growth in semiconductor manufacturers' revenues from 27 percent to "the low 20s". Senior analyst Andrew Norwood told FTMarketWatch the revision would come shortly. Gartner released a report on Tuesday that said chipmakers' revenues grew 31 percent in 2000. But Norwood said inventory problems that hit Intel (INTC: news, msgs) , Motorola (MOT: news, msgs) and AMD (AMD: news, msgs) in the third and fourth quarters of 2000 would continue to impact the market in the first quarter of this year. "Our estimate for growth for 2001 was 27 percent. This should be revised down slightly in the next few days...to the low 20s," Norwood said. 2002 should be stronger He added that 2002 could see subsequent strong growth once these problems were ironed out. "This may just push out the boom period for the chip industry by about six months, so 2002 would be stronger than expected," he said. In Tuesday's report, STMicroelectronics (897710: news, msgs) rose to seventh from ninth in Gartner Dataquest's top ten worldwide semiconductor company rankings for 2000, by revenue. The only other European company in the group, Infineon (623100: news, msgs) dropped to 10th place from last year's 8th. Both companies' stocks fell in a negative European tech market. STMicro fell 2.2 percent in Paris to close at €46.5 and Infineon was down more than 5 percent to close at €37.5 in Frankfurt. Other chips stocks, such as Philips (940936: news, msgs) and Parthus (PRH: news, msgs) were also down 3.5 percent and 6.3 percent respectively in late afternoon trade. ARM (ARM: news, msgs) bucked the trend at first, rising 1.7 percent to 514.8 pence in the morning. But it fell 3.4 percent to close at 489 pence. Norwood said Philips had dropped out of Gartner Dataquest's top ten. The Dutch company now sat at number 11, he said, having ranked 10th last year. "Philips seem to have been drifting in the last couple of years," he said. "It's been a downward trend for them." One company that he said could be a rising star was Micron Technology (MU: news, msgs) . Toshiba jumps from 3rd to 2nd Intel (INTC: news, msgs) kept its number one ranking in the report and Toshiba (864750: news, msgs) (TSHTF: news, msgs) displaced NEC (NIPNY: news, msgs) at No. 2, moving up from third. Gartner Dataquest said annual global chip market revenue grew 31 percent in 2000 to $222.1 billion. But it pointed out that although Intel remained the market leader by far, its growth rate was the smallest at 11 percent. STMicro's growth rate was 56.5 percent, Toshiba's was 47.2 percent, the report said. Intel is seen as being heavily reliant on one sector - the PC industry, which experienced a slump in growth in 2000. See story. Geneva-based STMicro makes specialist chips for cable TV set-top boxes, cars and many other automated products. But Norwood said simple conclusions should not be drawn from this. "It's a real mixed bag. Some quite diverse companies have not done very well and some very focused ones have done exceedingly well. It's down to the individual strategies." In this respect he said STMicro stood out from the crowd. He said it had identified some high growth areas and targeted them. "That's really paid off for them," he said. For the long-term view, the Gartner Dataquest report's authors dismissed the recent chip market warnings as being purely related to short term inventory issues. "We see no reason to believe that this current weakening is anything else other than an inventory correction," said Joe D'Elia, vice president and director of Gartner Dataquest's European semiconductor research. -------------------------------------------------------------------------------- Madeleine Acey writes on technology for FTMarketWatch in London.

To: Elmer who wrote (123986)	1/2/2001 12:38:59 PM
From: Amy J	Respond to of 186894

RE: "Cisco is getting killed this morning..." FDIC is looking better each day... Regards, Amy J

To: Elmer who wrote (123986)	1/2/2001 2:08:07 PM
From: Mary Cluney	Read Replies (1) \| Respond to of 186894

EP,<<<Cisco is getting killed this morning... $34 and change.>>> As is EMC. $57 or so. IMO, the valuation correction for tech stocks is about done. Herd instinct being as such however, we could begin to see irrational pessimism. Human nature is such that there are always pessimists and misanthropes among us. Some may even enjoy the suffering of others. Nevertheless, the dynamics in the world are such that people recognize the need to get rid of negatives in their lives and build for a more prosperous future. The Internet and the spread of technology will be such a powerful force to fight ignorance and poverty that things are really different this time. The old economy is just that - old. The old economy is not going away any time soon - but it is going away. This nonsense about not needing more powerful computers and/or the PC era is over and that the PC is just another commodity is sooooooo stupid - it's not even funny. Mary