Table: Europe's Chipmakers Retrench
The world's No. 6 chipmaker is faring the best of Europe's Big Three, but second-quarter sales will be 6% to 11% lower than expected. It will reduce capital spending this year by 21%, to $1.5 billion, but plans no layoffs or R&D cuts.
No. 9 Infineon now forecasts 30% lower sales and a loss in the second quarter. It cut 2001 capital spending by 18%, to $2 billion, and will slash up to 33% from 2002's plans. It also froze hiring and replacements.
Chip unit of struggling electronics giant is facing a 25% sales decline and big losses in second quarter. Factories are running at only 45% of capacity, and capital spending this year will be just $850 million. The world's No. 12 chipmaker is falling farther behind.
Data: Dataquest Gartner, company reports, BusinessWeek