Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Fred Levine who wrote (52191)	9/15/2001 10:25:02 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

U.S. terrorist attacks could cause Taiwan's IT sector to fall 15%, says research firm Semiconductor Business News (09/14/01 14:13 p.m. EST) TAIPEI, Taiwan -- Citing a negative psychological impact on consumer spending due to this week's terrorist attacks in the United States, a leading market research firm in Taiwan here said that the island's total information technology (IT) industry will decline by more than 15% in 2001. Taiwan's IT industry was originally projected to fall by 8.4% to $37.7 billion in 2001, due in part to the current downturn in the worldwide electronics industry, according to the Market Intelligence Center (MIC), a government-sponsored market research organization, based in Taipei. But in the wake of the deadly terrorists attacks in the United States on Tuesday, Taiwan's IT now could fall by "15% or above," MIC said. This represents another blow for Taiwan, which is already mired in a major slowdown in its key PC and semiconductor sectors. The island is the world's largest supplier of LAN cards, monitors, mouse devices, PC motherboards, notebook PCs, scanners, and other PC products, according to MIC. "Taiwan's IT industry is bound to be affected by [the U.S. terrorist attacks], as the United States is the main market for Taiwanese IT products," MIC said. In total, nearly 40% of Taiwan's IT products are exported to the U.S. market alone, according to the research firm. "Psychologically, enterprises and users will be even less likely to spend on high-tech products, which they see as not absolutely necessary to day-to-day life," MIC said. "These events only serve to aggravate the U.S. economy, which was sluggish in its recovery to begin with," according to MIC. There are even more ominous signs. "America is the world's single largest regional desktop PC market," according to MIC "The short-term inflation of international oil prices, the depreciation of the U.S. dollar, and the loss of confidence among consumers have all taken a heavy toll on America's domestic demand," the research firm said. As a result, said MIC, "A peak season in the fourth quarter is highly unlikely, serving only to worsen the severity of America's declining desktop PC market." Taiwan's IT industry will also be affected by grounded flights to the United States, a halt in product shipments, and the "loss of control of key components," the research firm said. But there should be no problems with a shortage of key components. "Since the suspension of flights to the United States are only temporary, and Taiwanese vendors typically [have] emergency stock that will last them two weeks to three months, there should be no problems concerned with a shortage of key components during the short term," according to MIC.