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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: emaildelivery@businesswire.com X-To: TX-INDUSTRIAL-INFO-RES@businesswire.com X-cc: X-bcc: X-Folder: \ExMerge - Thomas, Paul D.\Deleted Items X-Origin: THOMAS-P X-FileName: paul d thomas 6-26-02.PST Welcome to eMail News Delivery, a service from Business Wire. Here is your Industrial Information Resources Inc. news release. If you have received this in error please send a message to: eMailDelivery@businesswire.com with the following command in the body of the message: unsubscribe TX-INDUSTRIAL-INFO-RES If you have questions about this service, please contact your Business Wire Account Executive or service@businesswire.com BW2073 JAN 17,2002 5:00 PACIFIC 08:00 EASTERN ( BW)(TX-INDUSTRIAL-INFO-RES) Capital Spending for the Semiconductor Industry Shows Positive Signs Moving Into 2002, in an Advisory by Industrialinfo.com Business/Energy Editors HOUSTON--(BUSINESS WIRE)--Jan. 17, 2002--An advisory from Industrialinfo.com (Industrial Information Resources Incorporated; Houston). Despite worldwide employment losses in the semiconductor industry, new economic data may suggest an upturn in the industry during the second quarter of 2002. According to the recently released Semiconductor Billings Report produced by the Semiconductor Industry Association (SIA) and the Semiconductor Equipment and Materials International (SEMI) association, November 2001 global chip sales increased by 1.5%. Typically, fourth quarter sales are normally high inline with the holiday season and though 2001 fourth quarter sales may still lag behind historical figures, any consecutive rise in semiconductor sales may indicate that a bottom has formed and a recovery may be near. Over the next few months, consumer demand will dictate whether or not the upswing in sales will continue. Currently, the two biggest consumers of tech products relative to semiconductors are multinational corporations and telecommunications companies. It is estimated that global spending for hardware and software by consumers will reach $600 billion in 2002. Any further investments will be dictated by the future state of the economy. During 2001, most semiconductor manufacturers scaled back production to reduce inventory levels while demand remained weak. Many companies announced employee layoffs that will continue through 2002. For example, one of the largest employment losses came from Motorola. The company announced in December yet another layoff of 9,400 employees. By mid 2002, total losses for the company will account for over 150,000 jobs since August 2000. NEC announced plans to suspend chip production in Scotland and lay off 1,260 employees by April of 2002. Several domestic production plants of NEC have also been scaled back because of the economic downturn. Santa Clara, Calif.-based Applied Materials Inc. recently announced that approximately 450 positions at their Silicon Valley fab facility and roughly 600 positions at their Austin campus would be cut. Although the list continues, employment data always lags behind other indicators. These manufacturers are simply reducing costs during a period of uncertainty. As the year unfolds, semiconductor sales still remain in question. Capital spending for the industry is expected to be down. Some semiconductor manufacturers may continue to invest in process automations to stay ahead of the competition. The next wave of production technology automation will come from the transition to 300mm silicon wafer production. Semiconductor equipment vendors are pushing hard for manufacturers to modernize into new processes. This could come soon. Industry experts are forecasting a recovery by mid year 2002 spurred by consumer confidence. If so, semiconductor manufacturers may increase 2002 capital investments. With inflation under control, combined with eleven consecutive interest rate cuts that have made borrowing more attractive, corporations have the right formula to move forward with automation and technology investments that will drive semiconductor manufacturers to expand. Industrialinfo.com is a leading provider of information in the industrial markets, including the semiconductors industry. For 2002, industrialinfo.com released the 2002 Industrial Outlook (http://www.industrialinfo.com/indoutlook.htm) that outlines in detail issues and trends including spending forecast for the industrial markets. For more information on the 2002 Industrial Outlook and other products supporting the industrial markets send inquiries to industrialmanufacturinggroup@industrialinfo.com or visit us at www.industrialinfo.com. --30--AA/ho* as/na CONTACT: Industrialinfo.com, Houston Michael Bergen, 713/783-5147 KEYWORD: TEXAS CALIFORNIA UNITED KINGDOM INTERNATIONAL EUROPE INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS ENERGY MANUFACTURING UTILITIES SOURCE: Industrialinfo.com For the best viewing of the news releases please use the following email settings: Courier 10 point. -Notice of Copyright and General Disclaimer- © 2000 Business Wire. All of the releases provided by Business Wire are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Business Wire`s members who are solely responsible for their content, accuracy and originality. All reproduction, other than for an individual user`s reference, is prohibited without prior written permission. - Notice of Copyright and General Disclaimer -- © 1999 Business Wire. All of the releases provided by Business Wire are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Business Wire`s members who are solely responsible for their content, accuracy and originality. All reproduction, other than for an individual user`s reference, is prohibited without prior written permission.
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