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

To: michael97123 who wrote (51652)	9/7/2001 9:09:54 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Taiwan's Electronic Sector Continues Declining; Upward Trend Seen Toward Year-End September 7, 2001 (TOKYO) -- The sales of listed Taiwanese electronic companies in July plunged 17.4 percent on a year-on-year basis, although sales rose 0.4 percent from the previous month. Total sales between January and July dropped 4 percent compared with same period in the previous year. The July sales also dipped from same month of the previous year and compared with the previous month. The above figures do not include sales of companies whose shares are traded over the counter. By products, sales fell of desktop PCs of Acer Inc. and First International Computer Inc. Sales of notebook PCs slowed down, but Quanta Computer Inc. and Compal Electronic Inc., makers that supply such computers to Dell Computer Corp. had good sales. However, other Taiwanese makers, including Inventec Corp., which supply personal computers to Compaq Computer Corp., did not perform as well, the report said. Riding on the upward swing of June sales, motherboards showed signs of recovering by increasing sales of boards compatible with Pentium 4, targeting middle-size PC manufacturers. As for the assembly of cellular phones, sales have come to a standstill because demand is low. It is highly likely that new large-scale shipments of cellular phones, which are manufactured on an original equipment manufacturer (OEM) basis, to the United States and Europe will be postponed to next year or later (such as Ericsson ordering from Arima). Meanwhile, some makers of cellular phone parts increased sales from the previous month. Although demand has remained low, it will pick up steam because the United States and European companies that commissioned Taiwanese makers to produce parts on an OEM basis have finally showed signs of completing inventory adjustments. As for other devices related to communications, sales of network-related devices slowed down, but sales of modems were brisk because of a growing demand for ADSL modems and cable modems. Because orders for year-end sales will pour in on a full scale starting in September, attention should focus on orders for devices, such as semiconductors, to be received by parts makers for July and August. But, some of the major parts makers already received orders in July. Taiwan Semiconductor Manufacturing Co., Ltd. increased its sales slightly over the previous month thanks to a rise in demand for products related to PCs. Sales moved upward for Sunplus Technology Co., Ltd., a major consumer IC designer of integrated circuits for digital cameras, toys and other products. Many companies saw an increase in the sales of parts related to PCs from the previous month. Although a full recovery is still not on the horizon, businesses are gearing up. Orders and sales of upstream manufacturers in August will be watched closely. At the same time, attention should also be paid to downstream makers. Particularly noteworthy are sales of desktop personal computers, which have not fared well, and sales of motherboards targeting midsize PC makers. Related story:Taiwan's Electronics Sector Shows Negative Growth in June (Yasuo Nakane, Senior Analyst, Daiwa Institute of Research Taipei Representative Office, Special to Nikkei Microdevices)