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

To: 16yearcycle who wrote (43854)	3/15/2001 10:46:42 PM
From: Shoibal Datta	Read Replies (1) \| Respond to of 70976

Sorry, I was half-kidding. I get your point. I don't think this is quite over. I wasn't planning on a two-year bear market. However, if we do go overboard on the downside the recovery will be a good base to set up some long term investments (even if it takes a while to come along). -SD

To: 16yearcycle who wrote (43854)	3/15/2001 10:51:02 PM
From: Ian Davidson	Read Replies (1) \| Respond to of 70976

news.cnet.com March 15, 2001, 7:20 p.m. PT TOKYO--Japan's five big chipmakers will cut their semiconductor-related capital spending by nearly 20 percent in the 2001/02 business year starting in April, according to published reports. Spending on chipmaking would fall 18.75 percent from this year's spending, while the planned amounts could be cut even further, the business daily Nihon Keizai Shimbun said Friday. Analysts said in recent weeks a consensus was emerging that the big chipmakers would trim spending by about one-fifth in the next business year, in part reflecting a marked slowdown late last autumn in global demand for personal computers and mobile phones. Japan's chipmakers spent heavily in the current business year and reaped strong gains in chip-related revenues and profits during the first half, when the information technology boom was still in full swing. The recent downturn, however, has forced them to trim profit estimates and spending plans, while spurring many investors to abandon the sector. Share prices in the five biggest chipmakers shed 40 percent to 65 percent of their value as they slid from highs hit last July to one- to two-year lows set earlier this week. During the period Tokyo's benchmark Nikkei 225 share average fell 35 percent. Toshiba, Japan's biggest chipmaker, said last month it would cut chip-related spending in 2001 and 2002 by slightly more than 20 percent, while Fujitsu has said it expects its capital investment in the sector could fall by as much as 20 percent. The other big chipmakers are NEC, Hitachi and Mitsubishi Electric. The Nihon Keizai also said Sony, which last year launched its PlayStation 2 next-generation game console featuring a complex new processing chip, would substantially cuts its spending on semiconductors for game machines. A spokesman for Sony's games subsidiary, Sony Computer Entertainment, said no official figures had been released but the company expected a hefty drop in its semiconductor-related spending now that facilities to make the new PlayStation chips were largely complete. Story Copyright © 2001 Reuters Limited. All rights reserved.