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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (7037)	9/2/2003 3:26:34 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

China's foundries progressing slower than expected By Mark LaPedus Silicon Strategies 09/02/2003, 3:15 PM ET PHOENIX -- Not long ago, there were fears that the new and aggressive silicon foundry startups in China and other nations would create a huge capacity glut in the marketplace. Those fears have been greatly exaggerated, due, in part, to a slower-than-expected production ramp from the Chinese foundry startups, said analyst Joanne Itow, who watches the market for Semico, based in Phoenix. "Just a few years ago some forecasters envisioned a glut of foundry capacity dumped on the market, placing foundries into the ominous position of competing in a commodity market with an overabundance of supply," Itow said in a statement. "However, as Semico predicted, those scenarios have not come to pass." One of the fears of a potential foundry glut came from China, in which the nation's chip makers were--and still are--building fabs at an alarming rate. But on the other hand, China is not building up capacity as fast as the market had previous expected. "While we have been closely watching capacity utilization and developments in China, it is clear that China's foundry market is developing, but not at the pace others had expected," Itow said.