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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Return to Sender who wrote (6152)	10/14/2002 11:19:04 AM
From: The Ox	Read Replies (1) \| Respond to of 95484

Gartner revises semiconductors outlook By Sonia Kolesnikov SINGAPORE, Oct. 14 (UPI) -- Just a few weeks ago, market research firm Gartner Inc. was predicting global semiconductor sales revenue in 2003 would jump 21.7 percent. Now, the firm is considering dropping this figure to 9-11 percent, said senior analyst Dorothy Lai Monday. This smaller increase will still be a sizeable improvement on this year's 0.1 percent contraction forecast and the 32.6 percent fall recorded in 2001. "The market is still very rocky and visibility remains poor. Too many corporate governance issues are hanging around, the economic recovery is lagging and now we have the turmoil in the Middle East," Lai told a press conference, explaining the reasons behind the downward revision. The Asia-Pacific region is alone faring slightly better, as semiconductor sales revenue are expected to increase 7.9 percent this year and 26.6 percent in 2003, she said. "Inventories have been cleared, but demand is still sluggish. It remains very difficult for those semiconductor manufacturers to see where the demand lies," Lai noted. Within the region, China/Hong Kong remains the largest and fastest growing semiconductor market, benefiting not only from international investments, but also from the stated government policy to make the sector a pillar of its economy. Lai was less optimistic about the prospects for the sector in Singapore and Malaysia, with both countries predicted to experience slower growth in the next few years, "because they will produce at much higher cost than China and many manufacturers are expected to relocate." Lai also suggested that both Taiwan and Singapore would need to focus their attention on research and development, as they will not be able to "compete" with China on a cost basis