Taiwan Chip Makers Give Boost to Applied Materials

Computergram International, August 24, 1999

Applied Materials Inc of the US, the world's leading maker of IC production equipment, has reported a 207% year-on-year increase in third-quarter orders from Taiwan manufacturers, well ahead of a global increase of 140%. Company president James Morgan was quoted by the Taiwan media as saying the semiconductor wafer industry is seeing such a strong recovery that the market for semiconductor equipment could double in the next five years.

He said that while orders from US clients were still the largest component of the company's business at 28%, Taiwan manufacturers were quickly closing the gap at 26% with Europe a distant third with 16% followed by Japan, 16%, Korea 8% and the rest of Asia 6%. Applied Materials' statistics show that global semiconductor makers' capital spending fell by 27.6% last year he said, but this year it is expected to grow 6.4% and next year by nearly 19%.