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

To: Jerome who wrote (46060)	5/1/2001 1:59:04 PM
From: Proud_Infidel	Respond to of 70976

Chip gloom envelops Taiwan By Mure Dickie in Taipei Published: April 30 2001 15:33GMT \| Last Updated: April 30 2001 22:43GMT Taiwan Semiconductor Manufacturing and United Microelectronics, which together dominate the global market for made-to-order computer chips, on Monday revealed bleak forecasts that underline the depth of the semiconductor slump. The 2001 estimates, combined with painful first-quarter results, were a blow to investors who have been watching the two leading "foundry" chip producers for any hint of an upturn in demand from their chip customers in the computer, telecoms and electronics sectors. UMC said it expected net profits to plunge nearly 75 per cent to T$13.3bn ($405m) this year from T$50.78bn in 2000. TSMC, the world's biggest chip foundry, predicted its net profits would fall an almost as sharply, by 60 per cent to T$25.7bn. Both Taiwanese companies stressed that it was very difficult to predict future trends in a market that until late last year was enjoying one of its best ever booms. However, the signals from the first quarter were almost uniformly gloomy, with profits sliding compared with both the previous quarter or a year ago. UMC said net profits fell 13 per cent year-on-year to T$6.47bn in the first three months of the year. TSMC's net earnings slid 17 per cent to T$8.42bn. The quarter-on-quarter figures were even worse. TSMC said late last week that its capacity utilisation rate - a closely-watched figure in the chip business - was likely to fall to around 45 to 50 per cent in the second quarter from around 70 per cent in the first three months. UMC's said its own rate could also fall to 50 per cent from 70 per cent - although differing methods of calculating utilisation mean the two companies' figures are only broadly comparable. Analysts seized on signs that TSMC was growing more optimistic on when the market might recover after Morris Chang, company chairman, said last week he sensed the first glimmers of spring. However, John Hsuan, UMC Corp chairman, said on Monday he was "very unsure" about when demand might begin to strengthen and that any recovery could prove slow and uncertain. The downturn in chip demand has prompted both TSMC and UMC to cut capital expenditure sharply this year. However, both continue to build expensive production lines capable of processing 12-inch silicon wafers and their executives insist the slump could prove a boon by weakening competition and making integrated electronics manufacturers more willing to outsource.

To: Jerome who wrote (46060)	5/1/2001 2:56:12 PM
From: michael97123	Respond to of 70976

Thanks Dad, Only thing i have done is lately is qqq's and taiwan semi and both are up nicely. I am up about 10% so far this year and thats quite a climb back. I was just musing about the relationship between intel and amat. I have switched those 2 several times when one got out of line with the other. I havent taken any action yet. Am looking for a 2-1 amat/intc price relationship before i would possibly start. Just about had that two weeks ago. I only do that with trading shares. Base positions in those two are core holdings. Mike