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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (49686)	8/2/2001 6:43:23 PM
From: AK2004	Read Replies (2) \| Respond to of 275872

it looks like intel was stuffing the channels after all Worldwide Chip Sales Fell 31% in June, Group Says (Update1) 2001-08-02 11:46 (New York) Worldwide Chip Sales Fell 31% in June, Group Says (Update1) (Adds analyst comment starting in first paragraph.) San Jose, California, Aug. 2 (Bloomberg) -- Worldwide semiconductor sales fell 31 percent in June because of slowing economic growth and excess inventories, a trade group said. That's the biggest drop in the industry's history, an analyst said. Sales fell to $11.6 billion from $16.7 billion in June 2000 and declined 8.8 percent from May's $12.7 billion, according to a statement from the Semiconductor Industry Association. The drop was steeper than a previous record 26 percent decline in October 1985, Salomon Smith Barney analyst Jonathan Joseph said. Chipmakers from Intel Corp. to Texas Instruments Inc. have been hurt this year as orders for chips powering mobile phones and computers slump and prices fall. As their customers work through stockpiles of chips, semiconductor makers such as STMicroelectronics NV have said a rebound may occur by year-end. ``While the magnitude of the trough is slightly greater than we had originally anticipated, we continue to believe that the timing of the bottom of this cyclical downturn will occur in the next few months,'' Joseph wrote in a note to clients. SIA President George Scalise said in the statement that chip industry sales may pick up again in the fourth quarter. The forecast comes after Merrill Lynch & Co. yesterday raised its outlook on the semiconductor industry, saying the worst was over. Intel Chief Executive Craig Barrett today repeated that he expects a recovery in the computer industry in the third and fourth quarters. June sales in the Americas fell 45 percent from the year- earlier period. They dropped 27 percent in Europe, 25 percent in Asia-Pacific and 20 percent in Japan. The San Jose, California-based association has said it expects a 14 percent decline in worldwide chip sales this year and predicts sales will rise 21 percent in 2002. --Jad Mouawad in the Paris newsroom at (331) 5365 5076 or jmouawad@bloomberg.net and Cesca Antonelli in San Francisco at (415) 743-3532/eds/jac Story Illustration: To chart the recent performance of the Philadelphia Semiconductor Index, see {SOX <Index> GP <GO>}.