INDUSTRY NEWS

Korean chipmakers lost $2.7 billion last year and are putting fab construction and tool purchases on hold. VLSI Research has examined the effects of the South Korean financial crisis on the 1998 chip equipment market, which totaled approximately $37.5 billion in 1997. The market research firm sees four possible growth scenarios: (A) Korea's crisis has no effect on chip demand and tool buying shifts to other regions; (B) Korean tool demand drops, and chipmakers shrink from chance to gain market; (C) Korean tool demand zeroes out and world's chipmakers refuse to pick up slack; and (D) Korean cutbacks "ripple throughout the world's economies." VLSI Research believes scenario A is most likely to take place. The second most likely? Scenario D.

Source: VLSI Research

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