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

To: Math Junkie who wrote (47676)	6/6/2001 7:37:15 PM
From: Proud_Infidel	Respond to of 70976

Surplus chip inventories will be written off by end of year, says report Semiconductor Business News (06/06/01 18:40 p.m. EST) PHOENIX--Worldwide chip sales will bounce back with a 25% increase in 2002 after dropping 12% in 2001, according to a new forecast released by Semico Research Corp. here today. The market research firm said stronger demand for semiconductors and the end of inventory corrections will drive the recovery next year. Semico issued its forecast on the same days that the Semiconductor Industry Association released its mid-year forecast. The SIA is now calling for chip sales to drop 14% in 2001, followed by a 20.5% increase in 2002 (see today's story). Semico said it already sees signs of inventory reductions in the second quarter and believes that this trend will continue for the rest of this year. New product designs are moving ahead, making accumulated inventory outmoded and difficult to sell, said the research firm. Semico said this inventory will be written off if not sold during the second half of 2001.