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To: Skeeter Bug who wrote (22890)10/24/1997 6:59:00 PM
From: TREND1  Read Replies (2) | Respond to of 53903
 
*** Semiconductor stocks get pounded

Shares of semiconductor equipment stocks fell sharply Friday over
fears of Asia's financial woes, weakening DRAM prices and analysts'
downgrades. With Asia representing about 50 percent of the market for
fabrication equipment, a slowdown in purchases could produce a flat
to down year in sales for equipment in 1998. Most industry research
firms had expected 1998 to be a growth year. Compounding the problem
is a further deterioration in DRAM prices, with 16 meg chips falling
below production costs and next generation 64 meg chips falling
rapidly as well. With more DRAM capacity coming on-line, the pricing
outlook is not favorable and may lead to a sharp reduction in
equipment purchases.