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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (1262)	10/23/2001 3:16:33 PM
From: Sully-	Respond to of 99280

Tuesday October 23 2:56 PM ET Semiconductor Capital Spending Seen Lower NEW YORK (Reuters) - Microchip makers will cut capital spending by another 25 percent next year as shockwaves from the Sept. 11 attacks compound problems with struggling demand for computers and other electronics, according to a report from IC Insights. The Scottsdale, Ariz.-based research firm said it estimates capital spending among chip makers worldwide will decline for the second year in a row, to $31.13 billion. In 2000, spending reached $60.8 billion, according to the research firm, fueling a boom among chip equipment makers such as Applied Materials Inc. (Nasdaq:AMAT - news) and KLA-Tencor Corp. (Nasdaq:KLAC - news). ``Next year's semiconductor capital spending budgets are based upon this year's semiconductor companies' financial results,'' the report said. ``This, of course, does not bode well for the equipment industry in 2002.'' The biggest drop in capital spending is estimated to come from Intel Corp. (Nasdaq:INTC - news), the world's largest chip maker. IC Insights said it expects Intel's 2002 capital spending to drop 40 percent to $4.5 billion. Intel surprised many industry watchers by maintaining its ambitious $7.5 billion capital spending budget this year, even as the market for chips deteriorated. Microchip sales are estimated to fall about 34 percent this year, with a slight boost of 1 percent expected in 2002, IC Insights said. dailynews.yahoo.com