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.

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

To: Return to Sender who wrote (9961)	6/3/2003 8:46:12 AM
From: The Ox	Read Replies (1) \| Respond to of 95703

UPDATE - WSTS cuts global chip sales estimates, shares fall Tuesday June 3, 6:04 am ET By Daisuke Wakabayashi and Lucas van Grinsven (Adds investor, analyst comment, share prices) TOKYO/AMSTERDAM, June 3 (Reuters) - A leading semiconductor industry group has scaled down its forecasts for global sales growth in 2003 and 2004 because of the sluggish world economy and the impact of the deadly SARS virus. The World Semiconductor Trade Statistics (WSTS) group said on Tuesday that it now expected the chip market to grow by 11.5 percent to $156.9 billion in 2003, rather than the 16.6 percent it forecast last October. "This latest forecast represents a shift in the timetable for an economic recovery," said Yoshihiro Todokoro, head of the WSTS Japan council and general manager at Matsushita Electric Industrial (Tokyo:6752.T - News). Semiconductor stocks dropped sharply following the news, with the FTSE European chip index (London:^FTTXSC - News) off four percent. But some financial analysts and investors said the sell-off was mostly inspired by profit taking after a recent rally. "Many European chip stocks are still up more than 20 percent over just five days," a Edinburgh-based fund manager said. A London-based analyst at a major investment bank said that even the downgraded WSTS forecast was bullish compared with consensus expectations in the City. "The 11.5 percent growth forecast is still too high. We're looking at high single digit growth. The fundamentals of the chip industry have not changed in recent weeks," he said. Chips are the brains of many electronic devices, from personal computers and cellphones to cars and toys. SIGNS OF RECOVERY The chip industry is recovering from its worst-ever downturn in 2001 and early 2002. The downgraded growth projection comes after weaker-than-expected global chip sales in April published by the WSTS on Friday. Sales were flat compared with March. But there are signs that sales might be improving. Singapore-based chipmaker Chartered Semiconductor Manufacturing Ltd (SES:CSMF.SI - News) said on Tuesday that strong demand for a new generation of high-end chips used for computer memory and graphics had helped narrow its quarterly loss forecast. Taiwan Semiconductor Manufacturing Co Ltd (Taiwan:2330.TW - News), the world's largest contract maker of microchips, said last week that shipments would surge about 25 percent in the second quarter due to increased consumer demand. Goldman Sachs said on Friday demand for computer memory chips could rise and prices recover following low inventories. The WSTS said 2003's 11.5 percent rise will be succeeded by 18.4 percent growth in 2004, down from an earlier prediction of 19.2 percent, and 7.9 percent in 2005, up from 2.5 percent. "As far as the growth rate goes, we expect to peak out in 2004," said WSTS council head Todokoro. Chip sales in the Asia-Pacific region will continue strong, the WSTS said. After a 28.5 percent rise in 2002, the region is expected to see demand grow an additional 13.3 percent in 2003 and another 22.3 percent in 2004, Japan is expected to see sales growth rates outperform all regions in 2003, with projections of a 17.8 percent rise, helped by strong sales of digital cameras and DVD players, the organisation said. Sales in Europe are seen rising 14.1 percent in 2003 but demand in the U.S. is expected to remain flat, up just 0.1 percent this year. The data from the WSTS is based on information from 68 major chipmakers worldwide.