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

To: Proud_Infidel who wrote (42090)	2/13/2001 11:10:13 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Taiwan semi: No budget cuts for top Manufacturing equipment SAN FRANCISCO (Reuters) - Taiwan Semiconductor Manufacturing Co. said Monday it will invest in leading-edge chip manufacturing equipment, despite a 30 percent cut in its 2001 budget for new chipmaking equipment. Taipei-based TSMC, the world's largest contract manufacturer of chips, said last week it was cutting 2001 investments in new semiconductor equipment to $2.7 billion from $3.8 billion last year. TSMC is going full-speed ahead to buy equipment for making 12-inch silicon wafers while cutting orders for equipment to make less profitable 8-inch wafers, said Senior Vice President Harvey Chang at a technology investors conference held by investment bank, Robertson Stephens. ``Where it's difficult to revoke those orders, we are letting them bring (8-inch) equipment in. The rest we will put a stop on,'' said Chang, who is also chief financial officer. The equipment, made by U.S. companies such as Applied Materials Inc. and Novellus Systems Inc., is key for making ever smaller and more powerful chips. Chang also reiterated TSMC's downwardly revised financial forecast for 2001 that the company announced last week. TSMC is expecting year-on-year chip sales to be down 29 percent in the first three months of 2001. The company had reported last week that January sales grew 73.2 percent from a year ago to about $500 million, but were down 11 percent from December. TSMC also said that based on customer comments, contract orders for semiconductors will bottom out by April this year and pick up again in the early summer. ``The second half of 2001 still represents a lot of uncertainty,'' Chang said. ``But we think we are very close to the bottom, and that total wafer demand will recover by June or July.'' TSMC's stock rose 50 cents to close at T$92.00 in regular trading in Taiwan on Monday before Chang's speech. (US$1 - T$32) Subject 50522