ASML, Applied, Tokyo Elec Gain 1st Half Taiwan Chip Gear Orders
1 Jul 2004, 08:10am ET
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TAIPEI -(Dow Jones)- U.S.-based Applied Materials Inc. (AMAT), the world's largest semiconductor equipment maker, Dutch giant ASML Holding N.V. (ASML) and Japan's Tokyo Electron Ltd. (8035.TO) are the main beneficiaries of strong first-half spending by Taiwan's world-class contract chipmakers.
Taiwan Semiconductor Manufacturing Co. (TSM) and United Microelectronics Corp. (UMC) have so far this year reported to financial regulators spending a combined NT$94.02 billion (US$1=NT$33.699) on new semiconductor-making equipment during the first six months - or two-thirds of their projected capex for this year.
Of that amount, the majority has gone to three semiconductor equipment makers, one each from Europe, the U.S. and Japan.
TSMC, the world's largest contract chipmaker, has reported spending NT$13.30 billion at ASML Hong Kong Ltd. so far this year, NT$9.19 billion at Tokyo Electron and NT$6.48 billion at Applied Materials Asia/Pacific Ltd.
UMC, the No. 2 contract chipmaker, has bought NT$10.09 billion worth of equipment from Applied Materials Asia/Pacific, NT$8.80 billion from ASML Hong Kong, and NT$8.22 billion from Tokyo Electron.
Demand for chip-production equipment has been so brisk amid an upturn in the industry that chipmakers in Taiwan have complained they may have to wait until next year to take delivery of some equipment - since even the tool makers appear to have been caught off guard by the strong semiconductor industry rebound.
The Semiconductor Industry Association projects world chip sales will rise 28.6% this year to US$214 billion, surpassing the previous record of US$204 billion in the Internet boom year of 2000.
In 59 separate statements to the Taiwan Stock Exchange filed from the beginning of the year to June 30, TSMC has reported spending NT$51.39 billion. Rival UMC has reported spending NT$42.63 billion in 45 statements to the TSE.
Some of the spending originates from last year. Companies in Taiwan don't have to report capital spending until the total amount of purchases from a single vendor passes NT$500 million.
For TSMC, a total of NT$5.88 billion of its first half total stretches beyond December of last year. The remainder, NT$45.51 billion, is all from December through June 30 of this year.
For UMC, a total of NT$5.07 billion of its total stretches back into 2003, while the remaining NT$37.56 billion is all from the first half of this year.
-By Dan Nystedt, Dow Jones Newswires; (8862) 2502-2557; dan.nystedt@ dowjones.com
-Edited by Andrew Bullard
Dow Jones Newswires
07-01-04 0810ET
