Chipmakers on a Rampage
With demand for chips still surging after last year's sales record of $149 billion, chipmakers will soon head off on another buying binge for production equipment. Just now, though, the semiconductor industry is digesting the equipment purchased last year. For the suppliers of these esoteric machines, this year will easily top 1999, predicts market researcher Dataquest Inc. (chart)--but it's nothing like the bull that will rage next year.
Chip companies are expanding capacity as fast as they can get delivery of new capital equipment. In the rush to grab as much market share as possible, chipmakers will almost certainly overbuild--and precipitate another slide. Dataquest figures the next crest is coming in mid-2002.Edited by Otis PortReturn to top
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