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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (21853)	11/15/2004 11:55:49 PM
From: ild	Read Replies (2) \| Respond to of 110194

Chipmaking equipment downturn likely, says SEMI (Updated) By Peter Clarke Silicon Strategies 11/12/2004, 1:30 PM ET MUNICH, Germany — Semiconductor Equipment Materials International (SEMI) has retracted data put out at a press conference held at the Electronica trade show Thursday (Nov 11.) and an imminent downturn in the chipmaking equipment market would now appear to be the prevailing opinion. At the event a SEMI executive said that the annual market for semiconductor manufacturing equipment would grow 25 percent in 2005 to about US$45 billion. Subsequently the organization said that this information was included in the presentation in error. The presenter, Pierre Lucas, director of public policy for SEMI Europe, spent part of his time saying there were indicators that a downturn in the equipment market is coming, and that appears to be the opinion that now prevails. The downturn point of view was endorsed by Otto Kosgalwies, vice president of infrastructure and services at STMicroelectronics, who said he sees global capital expenditure turning down by about 10 percent in 2005 from a level of US$47 billion in 2004. With just one and a half months of 2004 to run SEMI seemed more certain of its 2004 figure for chipmaking equipment sales, which it puts at US$36 billion, up 63.6 percent on a 2003 figure of U$22 billion. For the complementary activity of materials sales SEMI sees 2004 as being a US$26 billion year, up 13.0 percent from US$23 billion in 2003. At another point in his presentation Lucas said: "There is slow down coming up in the equipment industry; not as dramatic as 2001." ST's Kosgalwies, said that ST has decided to pull in its own capital expenditure from US$2 billion in 2004 to U$1.5 billion. SEMI Europe did not provide alternative data to that included on the erroneous slide.