STMicroelectronics predicts rebound in industry by 2002

Article Abstract:

Jean-Philippe Dauvin, chief economist at STMicroelectronics NV, predicts a turnaround in the semiconductor industry, with double-digit growth by the end of 2002. Mr. Dauvin would not give a specific grrowth forecast for ST, but predicts a pickup in capital expenditures in the industry as a whole due to companies' quest for improved productivity combined with low interest rates.

France, Industry trend, Beliefs, opinions and attitudes, STMicroelectronics N.V., STM, Dauvin, Jean-Philippe

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Intel's tumble underscores the debate over coming changes in PC hardware

Article Abstract:

Intel's wild day on the stock market illustrated ranging projections of big hardware changes planned for 1998. Company shares fell $2.1875 to close at $96.1875 on Aug 22, 1997, after dropping by as much $6.875 during the same day. The decline followed Merrill Lynch Analyst Thomas Kurlak's forecast of a slow semiconductor market in early 1998. Kurlak believes computer manufacturers will scale back chip buying to strengthen their inventories. Kurlak also predicted a steep drop in chip process, because of Intel's plans to shift customers to its new Pentium II line of microprocessors and lower prices on older products. Other analysts dispute Kurlak's idea and reasons. Dataquest predicts a 1998 unit sales increase of around 17%, up from 19% in 1997. Changes are sweeping the industry, meanwhile, which include less expensive PC systems and new competition for Intel's Pentium chip line.

Intel Corp., INTC, Securities, Company sales and earnings, Company losses

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Chip industry forecasts a broad recovery; sales are seen as rising 9.1% to $133.4 billion in '99, after 10.8% drop in '98

Article Abstract:

Semiconductor chip sales will rebound in 1999 following a dramatic decline in 1998, according to the Semiconductor Industry Association. The prediction says 1999 sales of $133.4 billion will top the 1998 totals of $122.3 billion by a 9.1% margin. By comparison, the 10.8% sales drop marks the industry's worst performance since its 16.8% plunge in 1985. Reversing a steep decline in chip prices accounts for the most important step, as chip owners have been shuttering factories and reducing capital spending since May 1998 to balance supply and demand. Intel's bullish 4th qtr 1998 forecast and surprising 3rd qtr 1998 report signaled a turnaround, according to optimists, Memory chips, which will represent 18% of all chip sales in 1998, also will play a key role in the projected turnaround. Industry leaders also believe the cycle will continue despite unsettled international economic conditions and the growing popularity of inexpensive computers.

United States, Forecasts, trends, outlooks, Market share, Semiconductor chips, Integrated circuits, Market trend/market analysis

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