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

To: StanX Long who wrote (63054)	4/22/2002 12:14:48 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

Fewer chip makers are willing to join $1 billion capex club this upturn By J. Robert Lineback Semiconductor Business News (04/19/02 08:59 a.m. EST) siliconstrategies.com The purse strings on semiconductor capital spending are being unloosen a bit by some manufacturers as signs of a market recovery grow, but new forecasts still show 2002 as being another downer year in terms of investments in chip factories worldwide. New estimates from market researchers at IC Insights Inc. this week show only seven chip companies planning at least $1 billion in capital expenditures in 2002 vs. nine in the downturn year of 2001, and 19 in the boom times of 2000. Cutbacks in spending and shifts to outside foundry capacity has shuffled the Top 10 ranking of capital spenders (see table below). Worldwide semiconductor capital spending in 2002 is now expected to decline in a range of 15-to-20%, pushing the total down to $29.9-to-$31.8 billion this year from $37.4 billion in 2001, said the new forecast from IC Insights. However, the Scottsdale, Ariz.-based research firm also said the 2002 decline in semiconductor capex will most likely be less than previous expected--closer -15%--because chip producers are reviewing and some are increasing their investment plans from the original budgets set at the start of this year.