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Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?

To: Frank Povoski who wrote (5573)	1/7/1998 11:07:00 AM
From: LONE EAGLE	Read Replies (1) \| Respond to of 11555

fyi.....buy on FUD ................ Chip Equipment Spending Remains Big Question ( 1/07/98; 10:18 a.m. EST) By J. Robert Lineback, Semiconductor Business News Suppliers of semiconductor production equipment and materials appear to be bracing themselves for slow growth in 1998 while the chip industry attempts to sort out the impact of Asia's economic woes. An informal poll of executives attending the Industry Strategy Symposium in Pebble Beach, Calif., this week showed most were now expecting a flat year. But industry analysts presenting new forecasts at the annual meeting varied greatly in their outlooks for 1998. For example, Dataquest analyst Clark J. Fuhs said he predicted wafer fab equipment spending will increase only 1.8 percent to $22.7 billion in 1998 compared with $22.3 billion in 1997, when the capital equipment market grew 2.9 percent. In contrast, Dan Hutcheson of VLSI Research painted a highly optimistic picture, forecasting a 24.7 percent increase in wafer fab equipment purchases in the next 12 months. Hutcheson said he expects wafer fab equipment spending to reach $26.9 billion in 1998, compared with $21.6 billion in 1997. "The data indicates we are in an upturn cycle," said Hutcheson, who said he believes pressures are increasing on chip makers worldwide to complete the migration to quarter-micron processes in 1998. Meanwhile, Dataquest's Fuhs maintained that stronger-than-expected demand for chip production systems in 1997 "stole" growth from 1998. In addition, weak demand for new wafer fabs in the Far East will also depress capital spending this year, according to Fuhs, who sees a 15.4 percent decrease in Asian revenues for equipment suppliers in 1998. "I'm not bearish on Asia. They will continue to spend money [on new fab capacity], but the issue is when," Fuhs said. "Will it take six to nine months? We think it will, and Asia will come back spending more money on capacity in 1999 or 2000." In South Korea, new capital spending has essentially been "frozen," and when it does restart, European projects will be given first priority, Fuhs said. Phase II expansions in the United States will most likely receive funding in 1999 after a delay, he added. In 1998, Korean capital spending will be cut 40 percent, based on U.S. dollar sales, Fuhs said. In 1999, Asian spending on wafer fab equipment will rebound with a 14.1 percent increase to $6.7 billion, Fuhs said. In 2000, the region will increase it capital spending on new fab capacity by 61.2 percent to $10.8 billion, according to the new Dataquest forecast.

To: Frank Povoski who wrote (5573)	1/7/1998 12:29:00 PM
From: JakeStraw	Read Replies (1) \| Respond to of 11555

RESEARCH ALERT- Lehman Bros downgrades five stocks NEW YORK, Jan 7 (Reuters) - Lehman Brothers said Wednesday it lowered its rating on shares of International Rectifier Corp(NYSE:IRF - news), Alliance Semiconductor Corp (Nasdaq:ALSC - news), National Semiconductor Corp (NYSE:NSM - news) and Integrated Device Technology Inc(Nasdaq:IDTI - news) to outperform from buy. The Wall Street firm also said it lowered its rating on shares of Advanced Micro Devices Inc (NYSE:AMD - news) to neutral from buy. Shares of International Rectifier stood down 5-/16 at 12, Alliance Semiconductor down 1/4 to 5-3/8, National Semiconductor down 1-3/16 to 23-3/4 and Integrated Device Technology down 3/8 to 9-7/8. Advanced Micro Devices was off 5/8 at 19-1/4. Looks to be from the Atmel (ATML) fallout.