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Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant? -- Ignore unavailable to you. Want to Upgrade?

To: Scotsman who wrote (2843)	12/30/1997 7:07:00 AM
From: Scotsman	Respond to of 4697

Japan to cut chip plant spending By Reuters December 29, 1997, 10:00 a.m. PT news.com TOKYO--Japanese semiconductor makers are expected to sharply reduce their capital investment, a move that may affect the entire Japanese economy, business daily Nihon Keizai Shimbun said today. Manufacturers are considering shrinking their capital spending partly due to the sluggish semiconductor market but also because of their efforts to use cost-efficient production facilities and expand cooperation with foreign makers, the paper said. Spending on semiconductor operations, generally large-scale, benefits other sectors of the Japanese economy, and the expected cuts in capital investment may adversely affect Japanese industry, the paper said without elaborating. NEC, suffering from lower prices of memory chips, is expected to revise down its plan for capital investment in the semiconductor business for the current business year to March 31 by 10 billion to 20 billion yen from its initial plan of 190 billion yen. The company is also likely to revise down its forecast for its semiconductor output for 1997/98, Nikkei said. Earlier this year, NEC said it expected its semiconductor output for 1997-98 to be worth 1.26 trillion yen, up 14.5 percent year-on-year, but NEC's actual 1997/98 semiconductor output may be more than 60 billion yen smaller than the forecast. Toshiba is planning to reduce its group capital spending on the semiconductor business for 1999-2000 by up to 40 percent, or about 70 billion yen. For 1997-98, it will allocate 170 billion yen, and for 1998-99, Toshiba is expected to maintain that level of capital investment for semiconductor operations. Toshiba will be able to cut capital spending by adopting a simplified production method and entrusting production of some products to makers in Taiwan and Singapore, the paper said. Fujitsu may cut its capital investment for semiconductor business for 1998-99 by more than 30 percent from its planned semiconductor investment of 180 billion yen for 1997-98, Nikkei said. Spokesmen for the three semiconductor makers were not available for comment on the report due to year-end holidays. Story Copyright c 1997 Reuters Limited. All rights reserved.