The chip market recession takes it toll

The chip market recession takes it toll
Tom Foremski
Several more electronics firms yesterday warned of lower sales and the possibility of further job cuts as the recession in global chip markets and slower PC growth continue to take their toll.
Companies making announcements included US firms Seeq Technology, In Focus Systems, and Taiwan based Macronix International. Seeq said that it will report a loss of as much as $0.02 per share for its fiscal third quarter.
Seeq blamed a sharp fall in already depressed order rates due to high levels of inventory amongst its largest customers. This will result in 20 per cent lower sales for its third quarter.
In Focus, which makes LCD panels, said that its fiscal second quarter results will fall below analyst estimates. The company said that despite growing orders, it is suffering from a strong dollar compared with the Japanese yen.
Macronix, a major supplier of EPROMs, flash memory and ROM chips, said it is slashing capital spending for fiscal 1998 to about $87m from more than $319m.

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