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

To: Gottfried who wrote (10244)	6/7/2004 8:20:15 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

IC slowdown, oversupply seen in 2006, says iSuppli Silicon Strategies 06/07/2004, 5:10 PM ET EL SEGUNDO, Calif.--New semiconductor capacity that is coming online this year and next will drive the IC industry from its present state of undersupply into an oversupply condition in less than two years, according to a new report from iSuppli Corp. on Monday (June 7). "The return of oversupply and declining chip prices will contribute to a stall in the semiconductor industry in 2006, when revenues are expected to remain essentially flat at just 1.7 percent growth," according to the El Segundo-based research firm. At the same time, semiconductor capital spending is expected to jump 34.8 percent in 2004, from $30.8 billion in 2003, to $45.2 billion in 2004, according to iSuppli. Capital spending growth will slow in 2005, rising 6.2 percent to $48 billion, before falling 8.3 percent to $44 billion in 2006, according to iSuppli. "In 2007, the capital spending cycle will start again, with sales rising 9.3 percent to reach $48 billion, according to the report. "While semiconductor capital spending will rise robustly over the next two years, it won't even come close to the excesses of 2001 when it reached $71.3 billion. Correspondingly, the coming semiconductor industry slowdown won't be nearly as severe as the downturn of 2001, when revenue plunged nearly 30 percent."