The Chips Are Down. Way Down

A severe shortage puts a squeeze on electronics makers

These should be the best of times for Silicon Integrated Systems Corp. The Taiwan company designs chips used in personal computers sold by the likes of IBM and Dell Corp. Yet while global demand for electronics products is soaring, SIS's stock price is off 60% since March. And in the first quarter, the company's profits fell by nearly half, to $46 million, from the same period last year. The culprit: a severe chip capacity shortage that is making it hard for SIS to get its semiconductors to market.

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