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To: pbull who wrote (12692)	4/16/2001 10:16:28 PM
From: Boplicity	Respond to of 13572

Thomas Weisal's Ross Says Chipmakers Are a Buy: Comment San Francisco, April 17 (Bloomberg) -- Eric Ross, an analyst at Thomas Weisal Partners, comments on the outlook for semiconductor demand. ``We look at the semiconductor market in terms of PCs (personal computers), cell phone handsets, communications and infrastructure products, and consumer electronics and general industry use. ``PCs and servers account for 40 percent to 45 percent of semiconductor revenue. After a weak fourth-quarter when a lot of inventory was built up, we've seen that inventory worked out. We are seeing demand picking up for OEM (original equipment manufacturers). ``Cell phone handsets, which account for 10 percent to 15 percent of semiconductor revenue, are seeing their inventories being worked out. ``Communications and infrastructure inventories have grown incredibly fast. Companies such as Altera (Corp.) have built up inventories of at least 12 months. Communications and infrastructure account for 10 percent to 15 percent of semiconductor revenue. ``We're hearing, with the exception of PDAs (personal digital devices) and set top boxes, consumer electronic inventories have clear channels'' which means there is not much inventory. ``There is a lot more growth in this market than people expect such as for MP3 or DVD players. Consumer electronics accounts for about 15 percent of semiconductor revenue. ``The reason I think it would be good to build positions in stocks (such as Taiwan Semiconductor Manufacturing co. and United Microelectronics Corp.) is that there is real upside opportunities as the semiconductor cycle is closer to the bottom than the top.'' Still, ``demand will continue to fall in the second- quarter.''