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

To: Roy F who wrote (23062)	8/18/1998 11:30:00 AM
From: Proud_Infidel	Respond to of 70976

Worldwide chip sales decline 14.1% August 18, 1998ÿÿ ÿÿÿ COMPUTER RESELLER NEWS via NewsEdge Corporation : San Jose, Calif. -- Worldwide semiconductor sales in June fell 14.1 percent compared with the same period last year, according to the Semiconductor Industry Association (SIA). Semiconductor sales totaled $9.8 billion in June, according to the SIA's Global Sales Report, which was just released. This figure represented a 2.2 percent drop compared with May. Overall sales for the first six months of 1998 totaled $62 billion, compared with $66 billion for the same period in 1997, the SIA, based here, said. Semiconductor sales in Japan suffered the most, according to the SIA. About $2.1- billion worth of chips were sold in Japan this June, a 25.7 percent drop compared with $2.8 billion in June 1997. In the Americas, sales fell to $3.2 billion this June, nearly 16 percent below corresponding figures from a year ago. The drop in worldwide semiconductor revenue was not a result of declining production, but was instead caused by continuing price erosion, especially for DRAM and microprocessors, said Doug Andrey, director of finance for the organization. "We're still seeing some very strong growth rates," Andrey said. "But this is being offset by declining prices." As a result of the falling prices, the semiconductor industry has seen a decline in capital spending, Andrey said. "Korea has been impacted the most, especially since the collapse of the won," he said. The SIA predicts the semiconductor industry to turn around next year. "The fundamentals will come back," Andrey said. "The crisis in Asia will be alleviated. And when that happens, Asia's PC market will pick up." Copyright - 1998 CMP Media Inc.