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

To: Proud_Infidel who wrote (20710)	6/24/1998 1:45:00 PM
From: Teri Skogerboe	Read Replies (3) \| Respond to of 70976

Brian, I don't believe the reports that INTC has shortages of microprocessor chips... (maybe bad reporting or who knows what). It just doesn't hold water in my opinion. The prices for those chips have been steadily falling and the shrink alone increases their capacity by approx. 33%. I think the story is hype, and this is a sucker's rally, but lots of money has been made on both sides of these sucker's rallies in the past. Teri A story below on Taiwan Semi's CEO recent comments on business conditions. Dow Jones News Service 06-18-98 Copyright (c) 1998, Dow Jones & Company, Inc. HSINCHU, Taiwan (Dow Jones)--Faced with slowing sales and weak global prices, electronics giant Taiwan Semiconductor Manufacturing Corp. (TSM)is tightening its belt, cutting capital spending by US$300 million and curbing production expansion for next year. The island's largest semiconductor maker also is paring back plans to hire new employees and slowing down progress on its US$10 billion investment in southern Taiwan's second science park, a top official at the company said. The moves are part of a growing realization in the company that its original, ambitious expansion plans are looking increasingly expensive in a sluggish global tech industry. Document 4 of 202 Page 2 of 2 'TSMC had a pretty good first quarter...but we know the second quarter won't be as good. The industry is slowing down,' Harvey Chang, senior vice president and chief financial officer, said in an interview with Dow Jones. 'We're trying to improve the situation.' Recently, Chang and other senior executives reviewed their business plan and decided to pare back capital spending to US$1 billion from the US$1.3 billion originally slated for this year. The company has halted preparations for increasing output of semiconductors by 25% next year, cutting back that number to a more realistic 10%-15%, Chang said. Moreover, 'we're looking at our head count...and toning down the hiring of new recruits,' Chang said. Asked whether there would be layoffs, he replied with an emphatic 'No.' (MORE) DOW JONES NEWS 06-18-98 11:49 PM I0607 * End of document.