Semiconductor Equipment Recovery to Accelerate in 2004 on Rising Demand and Capacity Utilization, Forecasts S&P Equity Analyst
Tuesday August 19, 3:02 pm ET
NEW YORK, Aug. 19 /PRNewswire/ -- Standard & Poor's semiconductor equipment equity analyst has published his latest survey of the sector, in which he forecasts stronger 2004 sales growth for makers of chip manufacturing equipment following a moderate increase this year. The survey, Industry Survey on Semiconductor Equipment, is published twice yearly by Standard & Poor's, a leading provider of independent research, indices and ratings.
"We expect worldwide semiconductor equipment sales to grow 5% this year, near the low-end of our earlier estimate for the year, followed by a much stronger increase in 2004," says Richard Tortoriello, Semiconductor Equipment Equity Analyst, Standard & Poor's Equity Research Services and author of the survey. "Two factors, we believe, will drive this growth. Continued improvement in the economy should lead to renewed corporate information technology spending, which accounts for two-thirds of all information technology spending. Secondly, we expect capacity utilization, which is the percentage of the available equipment used in wafer fabrication being employed, to reach 85% at the end of this year, on the threshold of the critical 85% - 90% rate at which chipmakers begin to invest in new capacity," concludes Tortoriello.
Standard & Poor's Industry Survey on Semiconductor Equipment looks at the issues affecting the main segments of the chip manufacturing industry. These include the effects of the outsourcing of semiconductor manufacturing; the boom in semiconductor consumption and production in Asia and in particular China; the effect of new technologies on the industry, including 130 nanometer linewidths and 300mm wafer fabrication plants; the technological limitations of photolithography; and increased factory automation. In addition there is a look at key players in the semiconductor equipment industry such as Applied Materials Inc. (Nasdaq: AMAT - News), KLA-Tencor (Nasdaq: KLAC - News), and Novellus (Nasdaq: NVLS - News).
Industry Survey on Semiconductor Equipment is part of the Standard & Poor's Industry Surveys series, produced by its senior equity analysts, that keeps a watchful eye on 51 U.S. industries, offering insights into trends and conditions that affect leading companies' market performance. Covering more than 1,230 U.S. stocks, Standard & Poor's equity analysts have the largest U.S. equity research coverage counts among firms with no investment banking activities.
Standard & Poor's Industry Surveys provide a broad and fundamental overview of each industry's structure, its recent performance, and an analysis of trends that will influence it in the future. Each survey is organized into the following sections: Current Environment, Industry Profile/Industry Trends, How the Industry Operates, Key Industry Ratios and Statistics, How to Analyze a Company, Industry References, Comparative Company Analysis, and a Glossary of terms used in that industry. Both text and data are provided, as are references to additional sources of industry information. Two surveys on each industry are published each year.
Readers can purchase the Standard & Poor's Industry Survey on Semiconductor Equipment three ways: online at sandp.ecnext.com, by telephone at 800-221-5277, or via e-mail order sent to bill_kelleher@standardandpoors.com. Members of the media can request a copy from communications manager John Piecuch at (+1) 212 438 1102 or john_piecuch@standardandpoors.com. To view a video clip of Standard & Poor's equity analyst Richard Tortoriello discussing the sector, go to www.standardandpoors.com/industrysurveys (Viewing the video clip requires RealPlayer capability).
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