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

To: Sun Tzu who wrote (47173)	5/23/2001 5:57:28 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

SEMI predicts chip-equipment sales will drop 27% in 2001 Japan's market tops North America to become largest in world during Q1 Semiconductor Business News (05/23/01 13:24 p.m. EST) Recent Articles SAN JOSE -- The Semiconductor Equipment and Materials International (SEMI) trade group here today slashed its forecast for the chip production tool shipments in 2001, saying that the business will decline by 27% from revenues last year. Citing the downturn in the semiconductor and equipment markets, SEMI said worldwide chip equipment revenues will drop from $47.7 billion in 2000 to $35 billion in 2001. SEMI is also now projecting that sales of semiconductor materials will decrease 6% in 2001 from revenues last year. Not long ago, SEMI and the chip-equipment industry were still upbeat about the market. Back in December, SEMI originally predicted that the worldwide chip-making equipment industry would grow by some 22.3% to $57.2 billion in 2001 (see Dec. 6 story ). Today, SEMI also issued a forecast for 2002 and 2003. The worldwide chip-equipment industry will grow by a mere 3% in 2002, but will increase by 22% in 2003, according to SEMI, based in San Jose. In 2001, however, it's a bleak year. In what is arguably the worst semiconductor downturn ever, North American-based suppliers of chip production systems posted a record low book-to-bill of 0.42 in April, according to SEMI (see May 22 story ). In the first quarter of this year, SEMI reported that worldwide chip-equipment shipments were $11.2 billion, an increase of 10.9% in the like period a year ago but 12.7% below the figure for the fourth quarter of 2000. In a regional breakdown of Q1 revenues, SEMI said Japan's semiconductor equipment purchases surged 31.7% to $3.37 billion from $2.56 billion in the fourth quarter of 2000. The strong growth and weakness in other regions made Japan the world's largest geographical market for chip production systems in Q1--topping North America, which came in at $2.97 billion after falling 23.7% from $3.90 billion in Q4 last year (see table below). SEMI also reported worldwide equipment orders were $6.50 billion in the first quarter of 2001. The figure represents a 50% drop from the same quarter a year ago and 53% below the orders figure for the fourth period of 2000. "There was a rapid drop in the market for new semiconductor equipment in the first quarter as worldwide orders declined 53% from the fourth quarter of 2001," said Elizabeth Schumann, who tracks the market for SEMI. "While the rapidity of this downturn has been severe, we do expect a recovery in orders late in the second half to contribute to a more stable 2002 with flat or single digit growth across the industry," she said. Scorecard on regional chip equipment sales Region Q1 2001 Q4 2000 % change Q1 2000 % change (year-to-year) Europe $1.58 billion $1.87 billion -15.7% $1.39 billion +13.6% Japan $3.37 billion $2.56 billion +31.7% $2.18 billion +56.8% North America $2.97 billion $3.90 billion -23.7% $2.36 billion +26.1% Korea $1.03 billion $900 million +13.4% $820 million +25.3% Taiwan $1.13 billion $2.04 billion -44.5% $2.30 billion -50.8% ROW $1.17 billion $1.60 billion -27.1% $1.10 billion +6.7% Total $11.25 billion $12.88 billion -12.7% $10.14 billion +10.9% Source: SEMI