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

To: Kirk © who wrote (7814)	10/28/2003 9:02:00 PM
From: Proud_Infidel	Read Replies (3) \| Respond to of 25522

What am I missing here? TSMC said they are spending approx 500M in Q4, almost as much as Q1, Q2, and Q3 combined, yet GS is saying NOT to expect large orders in Q4?!?! *********************************** Summary: TSMC guided down Q4 capacity utilization on its earnings call, which we noted as a possibility in our weekly. This should disappoint investors expecting higher Q4 utilization to force TSM to place large orders in Q4. Message 19443818 *********************************** TSMC sells out, plans to spend $500 million in Q4 By Peter Clarke Silicon Strategies 10/28/2003, 11:23 AM ET TAIPEI, Taiwan -- On the back of its third quarter financial results and capacity utilization rates that have gone to 98 percent, leading foundry chip supplier Taiwan Semiconductor Manufacturing Company Ltd. (TSMC), indicated it plans to spend nearly $500 million in the fourth quarter of 2003. This will bring its capital expenditure up to approaching $1.2 billion for the year after spending $706 million during the first three quarters of the year, TSMC showed in presentation materials. As well as producing some strong growth numbers in the third quarter the company's capacity utilization had gone from 88 percent in the second quarter to 98 percent in the third quarter, TSMC did say that as more equipment is brought into use in the fourth quarter it expects capacity utilization to fall back to 95 percent, but this still effectively means the company is sold out and that lead times and average selling prices are set to rise. The development will also be good for other foundries such as UMC and Chartered Semiconductor of Singapore, which have followed TSMC out of one of the worst semiconductor recessions ever experienced. According to reports, TSMC said Tuesday (October 28, 2003) it plans to increase its capital expenditure in 2004. Although no absolute figure was given an analyst is quoted as saying he expects TSMC to spend between $1.8 billion and $2.2 billion in 2004.