Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: sixty2nds who wrote (23114)	5/2/2005 8:34:52 AM
From: sixty2nds	Respond to of 95471

08:31 Prudential updates semiconductor 2005 capital spending Prudential notes, bottoms up model shows flat spending in semi equipment for 2005, which is slightly higher than its previous survey which indicated 1% YoY decline. The primary upside is due to increase in capex by Intel. The firm's survey indicates 30% of the projected capital spending budget has been spent through Q1 2005. The heavy spenders in Q1 were Samsung (46%), TSMC (67%), and Infineon (75%). In terms of spending by application, memory contributed 48%, followed by IDM at 32% and foundry at 22%. Firm believes the gap between equipment orders, backlog, and capital spending is growing. Firm does not think the current order activity and backlog can sustain flat capex. Based on its assessment of the current order activity, Firm projects the high risk projects to the capital spending. Firm believes that if these high risk projects are delayed, capex cuts could lead to a 13% decline in YoY spending.