Japan chip makers see capital expenditure flat in 1999/2000

Japan chip makers see capital expenditure flat in 1999/2000
Tom Foremski
While capital spending by US chip manufacturers is expected to be up this year, Japanese chip makers are not planning any increases in their spending.
According to reports from Japan, the five largest Japanese chip makers have said that spending on fabs and chip making equipment will be flat in 1999 and in some cases could even be lower than last year. NEC, Toshiba, Hitachi, Fujitsu, and Mitsubishi said that although current plans do not call for additional spending, they will make a decision on final figures by the end of March.
With smaller amounts of fab capacity, the Japanese chip makers could miss out on an expected boom in chip sales this year. But their decision could help the overall chip industry to improve revenues since chip supply will come closer to demand and could even result in shortages of some components.


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