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

To: michael97123 who wrote (42086)	2/13/2001 11:00:45 AM
From: Proud_Infidel	Read Replies (2) \| Respond to of 70976

Semiconductor capital spending cuts won't stick in 2001, says report Semiconductor Business News (02/13/01 06:58 a.m. PST) NEW YORK -- While major semiconductor manufacturers have been scaling back capital spending plans for 2001, many chip makers are expected to increase investments in the second half of the year as the industry pulls out of its current sump, said a report from Lehman Brothers Inc. today (Feb. 13). The brokerage firm said a recent survey of major IC producers shows the chip industry now planning to lower capital spending by 1% in 2001 from about $55.5 billion in 2000. Lehman Brothers said it has revised its own forecast for growth down to 15% from 20%, but it is still calling for an increase in semiconductor capital expenditures because of a second-half recovery in 2001. Since the start of 2001, the world's top 20 semiconductor manufacturers have lowered capital spending plans by 10% from previous estimates, according to the survey by Lehman Brothers. These reductions include a $1.1 billion cut by Taiwan Semiconductor Manufacturing Co. (see Feb. 7 story) and what some observers believe is a 45% cut by Motorola Inc to $800-900 million (see Feb. 9 story). Intel Corp. and Samsung Electronics Co. Ltd. are the few exceptions to the rule with significant increases in capital spending during 2001. Last month, Intel stunned Wall Street analysts by increasing capital spending plans to a record $7.5 billion--a 15% increase from its previous guidance (see Jan. 17 story). In South Korea, Samsung has upped its capital spending plans by 18% to $5.5 billion from its previous 2001 budget, said Lehman Brothers in its report today. But Lehman Brothers analysts doe not believe the capital spending plans will remain at their current low levels. "We expect budgets to be revised upwards through 2001 as a result of a rebound in global electronics demand in the second half '01," said today's report. Subject 50522