ST and Philips to head plant spend

ST and Philips to head plant spend
David Manners Two of Europe’s semiconductor companies will be among the biggest investors in semiconductor plant and equipment this year, according to semiconductor industry magazine The McLean Report. STMicroelectronics (ST) will be the third largest investor this year while Philips will be the most aggressive in expanding its budget. Intel’s expenditure is the largest at $3bn, almost three times that of the second largest spender, Samsung, on $1.2bn. ST is in third place with $1.14bn, followed by UMC on $1.1bn, Texas Instruments at $1.03bn, NEC on $1bn, IBM with $950m and Philips with $915m. Philip’s budget shows by far the biggest increase of any company in the world – up 85 per cent on 1998. The most aggressive regional group in capital investments this year are the Taiwanese with DRAM manufacturer Nan Ya (a subsidiary of Formosa Plastics) increasing its spend by 422 per cent and Macronix increasing its budget by 383 per cent. Intel’s spending at $3bn is dramatically down from its 1997 spend of $4.5bn, suggesting it is no longer pursuing market share but an improvement in output per investment dollar.


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