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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: David Rosenthal who wrote (18315)	3/30/1998 5:10:00 PM
From: Teri Skogerboe	Respond to of 70976

Dave, All, M'bishi Elec says to cut group capex to 50 bln yen TOKYO, March 25 (Reuters) - Mitsubishi Electric Corp <6503.T> said on Wednesday it would cut its group capital spending for semiconductor business for the 1998/99 business year to 50 billion yen from 90 billion yen this fiscal year. The firm plans to earmark about 10 billion yen for production of advanced DRAMS and 15 billion yen for System LSI production, from the 50 billion yen budget for the year, a Mitsubishi Electric official said. The firm said it has no plan to invest in 12-inch-wafer production lines in fiscal 1998/99. It said it expects to produce 540 billion yen worth of semiconductors on a group basis in 1998/99, up 5.9 percent from 1997/98. 22:23 03-24-98 --------------- Mitsubishi Electric President Quits .c The Associated Press TOKYO (AP) - Mitsubishi Electric Corp., a major Japanese electronics manufacturer, said Wednesday that its president will step down in June and be replaced by Ichiro Taniguchi, a senior managing director. The resignation of sitting company head Takashi Kitaoka, 67, was widely expected because Mitsubishi Electric has been dogged by a prolonged slump in product sales, along with a scandal involving payoffs to a corporate racketeer. Taniguchi, 61, will formally take on his new duties when the company convenes its annual shareholder's meeting on June 26, Mitsubishi Electric said in a statement. Outgoing president Kitaoka will be named an advisor, it said. Hit by sluggishness in the global semiconductor market as well as weak demand in Japan for household appliances such as air conditioners, the company expects to post a consolidated net loss for the fiscal year ending this month. As a result, the high-tech arm of Japan's Mitsubishi group has frozen plans to develop next-generation computer memory microchips, curtailed personal computer marketing efforts and scaled down overseas operations in the U.S. and elsewhere. In a stark sign of the troubles faced by the company, employees received product vouchers in lieu of cash as part of their bonuses paid out last December. In addition to its problems with red ink, Mitsubishi Electric has also been ensnared in a scandal involving alleged payments to a corporate racketeering syndicate. A day after arresting a senior Mitsubishi Electric official on charges of funneling money to a racketeer, police raided the headquarters of Mitsubishi Electric last November. It and a number of other brand name Japanese manufacturers are suspected of having funneled hush money to the racketeer as a means of ensuring their annual shareholders meetings would not be disrupted. AP-NY-03-25-98 0837EST Copyright 1998 The Associated Press. ------