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

To: sixty2nds who wrote (32556)	9/12/2006 1:38:11 PM
From: sixty2nds	Read Replies (2) \| Respond to of 95391

08:47 Chip equipment market to grow 20% - InfoWorld InfoWorld reports strong demand for semiconductors has prompted chip makers to spend more on production line equipment than anticipated so far this year, an analyst from Semiconductor Equipment and Materials Intl said Tuesday. The chip equipment mkt is on pace to grow 20% this year to over $39 bln, said Dan Tracy, senior director of industry research and statistics at S.E.M.I. That figure is higher than the 18% y/y growth the industry organization forecast in July. The growth rate will make 2006 the second strongest year ever for the industry, after its peak year in 2000. Sales of materials used in the chip making process, such as silicon wafers, are also growing faster than anticipated, Tracy said, and will likely reach a 10% y/y growth rate, higher than the 7% rate S.E.M.I. had previously forecast. But there is danger in the strong spending trend. Around 40% of all new production lines currently being built will start churning out chips in late 2007, potentially flooding the mkt with supply, Tracy said. S.E.M.I. predicts spending on new chip equipment in 2007 will be flat compared to this year.