Semiconductor

WASHINGTON -- It has taken more than 10 years of annual lobbying trips, but it finally seems legislators and administration officials have learned the meaning of one of Silicon Valley's most important "s" words: semiconductors.But after 60 meetings with government people during a visit here recently, semiconductor industry executives were less certain that the government understood the importance of that other vital "s" word: sanctions.Members of the Semiconductor Industry Association were in Washington to ask the Bush administration and Congress to enforce a troubled semiconductor trade agreement with Japan.

SAN FRANCISCO -- When Intel Corp. chief executive Paul S. Otellini takes the stage here today to kick off his company's conference for developers and partners, he'll talk about Intel's forthcoming "quad core" semiconductors with four separate processing engines. He'll discuss his company's plans for more power-efficient chips - the rallying cry for the semiconductor industry these days. He'll probably give up some new details about Intel's strategies for wireless networking, home entertainment and health care.

NEW YORK -- U.S. stocks rebounded a bit from Friday's drop, with shares of oil and semiconductor companies leading the rise yesterday.The Dow Jones industrial average rose 8.38, to 3,379.19, after falling 68.63 points, or 2 percent, Friday. Gains in Texaco Inc. and Chevron Corp. stock offset declines in shares of Procter & Gamble Co. and McDonald's Corp."After what happened Friday, it wasn't surprising that we saw prices stabilize as investors try to figure out what's going to be the next big move in stocks," said Peter Da Puzzo, senior managing director at Cantor Fitzgerald & Co.Standard & Poor's 500 Index increased 0.90, to 442.29, ending a three-session slump.

A summer sell-off in the volatile semiconductor group has raised an interesting question for investors: If the chips are down this much, is it time to buy? Although semiconductor stocks have underperformed the broader market since May, in recent weeks the market appears to be regaining an appetite for the group. Shares of computer chip-makers such as Intel Corp., Advanced Micro Devices Inc. and National Semiconductor Corp. have not only halted their nose dive but also regained a good portion of the ground they lost.

NEW YORK -- U.S. stocks fell yesterday, led by a slump in shares of semiconductor companies amid evidence of waning demand for their products.The decline ended six straight days of records for the Standard & Poor's 500 and Nasdaq composite indexes."

NEW YORK - The Nasdaq composite index fell for the first time in five sessions yesterday after a Morgan Stanley Dean Witter & Co. analyst said semiconductor companies are likely to reduce profit forecasts for the rest of the year. Intel Corp. and Qualcomm Inc. led the decline, which drove down the index by 51.86, or 2.6 percent, to 1909.57. Investors realize that "things can get much worse" after the report on computer-chip makers, said Michael Weiner, who helps manage $6 billion for Banc One Investment Advisors Corp.

NEW YORK -- Merck & Co. and J. P. Morgan & Co. led the Dow Jones industrial average lower yesterday, and Apple Computer Inc. was the only stock in the Standard & Poor's 500 index to rise."

Advanced Micro Devices' net risesAdvanced Micro Devices Inc. reported yesterday that net income rose 55 percent in the second quarter from the corresponding period a year earlier, largely because of strong sales of microprocessors for advanced personal computers.The company, the sixth-largest semiconductor maker, began selling the more powerful 486-generation microprocessor two months ago.

A summer sell-off in the volatile semiconductor group has raised an interesting question for investors: If the chips are down this much, is it time to buy? Although semiconductor stocks have underperformed the broader market since May, in recent weeks the market appears to be regaining an appetite for the group. Shares of computer chip-makers such as Intel Corp., Advanced Micro Devices Inc. and National Semiconductor Corp. have not only halted their nose dive but also regained a good portion of the ground they lost.

U.S. expects to regain lead in semiconductorsThe U.S. semiconductor industry, surpassed six years ago by Japanese rivals, is expected to retake the global lead by early next year, industry watchers say.It would be an astounding feat, the first time a key U.S. industry has regained a dominant market position after being knocked out of first place by Japanese competitors."

SAN JOSE, Calif. - Worldwide sales of semiconductors rose 1.8 percent in October from the previous month, indicating that demand is recovering, an industry group said yesterday. Sales rose to $12.5 billion in October from $12.3 billion a month earlier, boosted by demand for chips used in mobile phones, the Semiconductor Industry Association said in a report. Chip sales posted their steepest decline last year, and the trade group lowered its 2002 sales forecast earlier this month. Sales rose 20 percent in October from a year earlier, and the association predicted a "normal" pattern for year-end orders.

NEW YORK - The Nasdaq composite index fell for the first time in five sessions yesterday after a Morgan Stanley Dean Witter & Co. analyst said semiconductor companies are likely to reduce profit forecasts for the rest of the year. Intel Corp. and Qualcomm Inc. led the decline, which drove down the index by 51.86, or 2.6 percent, to 1909.57. Investors realize that "things can get much worse" after the report on computer-chip makers, said Michael Weiner, who helps manage $6 billion for Banc One Investment Advisors Corp.

IRVINE, Calif. - Broadcom Corp., a communications chip maker, agreed yesterday to buy closely held SiByte Inc. for $2.07 billion to add semiconductors used for processing Internet traffic, its 11th acquisition this year. Broadcom said it will issue 5.6 million shares valued at $1.23 billion to SiByte holders, and may issue more shares valued at $810.3 million if SiByte meets certain performance goals. The No. 3 maker of chips for small networks has been on a buying spree in the past year to expand its product line, particularly in chips for larger telecommunications networks that comprise the Internet.

PALM SPRINGS, Calif. -- Intel Corp. showed off a new microprocessor, code-named Willamette and running at 1.5 gigahertz, as the world's biggest semiconductor maker continues its race against rivals to have the fastest computer chip. At that speed, 1.5 billion electrical pulses are going through the chip every second to perform computer tasks. Intel's fastest production model chip is a Pentium III running at 800 megahertz, a little more than half as fast. Intel is in a heated race with rival Advanced Micro Devices Inc. to have the fastest chip on the market.

Anyone still looking for proof of the digital revolution needn't look much further than Fidelity Select Electronics Portfolio. This fund is up a healthy 37 percent for the year to date through mid-July. That puts it in the technology category's top third for the period -- no mean feat considering its dearth of red-hot pure Internet plays. Amid all the Net hoopla, the fund has kept its traditional focus on the comparatively mundane semiconductor, semiconductor-capital-equipment and PC sectors.

RICHMOND, Va. -- Motorola Inc., the world's No. 3 chip maker, said yesterday that it is halting construction of a $3 billion computer-chip plant near Richmond, because of low prices and slumping demand for semiconductors.Construction, which was delayed once before amid a 1997 chip-market decline, will stop within days and be halted indefinitely. The West Creek, Va., plant would have employed as many as 5,000 people, and made high-performance chips for pagers and hand-held computers.Chip makers are struggling with weak demand and plunging prices amid slower personal computer demand and economic problems in Asia.

SAN JOSE, Calif. - Worldwide sales of semiconductors rose 1.8 percent in October from the previous month, indicating that demand is recovering, an industry group said yesterday. Sales rose to $12.5 billion in October from $12.3 billion a month earlier, boosted by demand for chips used in mobile phones, the Semiconductor Industry Association said in a report. Chip sales posted their steepest decline last year, and the trade group lowered its 2002 sales forecast earlier this month. Sales rose 20 percent in October from a year earlier, and the association predicted a "normal" pattern for year-end orders.

NEW YORK -- U.S. stocks rose for a second day yesterday amid rallies in oil and semiconductor shares and active dividend-related trading in the stock of Hanson PLC."Over all, it's a very quiet day, with some strength in the semiconductor stocks," said Todd Clark, senior block trader at Mabon Securities. "It's been like this all week."The Dow Jones industrial average rose 20.31, to 3,773.45. Aluminum Co. of America, Caterpillar Inc. and Bethlehem Steel Corp. were the biggest gainers in the average.

NEW YORK -- U.S. stocks were mixed yesterday, as the Nasdaq composite index set its sixth straight record after bullish sales forecast by Intel Corp.Investors bought Eastman Kodak Co. and other companies that topped earnings estimates, and punished Caterpillar Inc. and Whirlpool Corp. for falling short.The Nasdaq soared 26.13, or 1.3 percent, to 1994.54. The index, packed with computer companies, is up 27 percent this year.The Dow Jones industrial average fell 11.07 to 9,234.47 after topping 9,300 for the first time, and the Standard & Poor's 500 index fell 2.77 to 1,174.

COSTA MESA, Calif. -- Rockwell International Corp. said yesterday that it will spin off the money-losing semiconductor division on which it pinned its future months ago and fire 3,800 in its remaining businesses as the once high-flier struggles to find a strategy to boost earnings.The cuts are mainly in the automation business, which makes equipment used in factories, and the avionics division, which turns out parts for airplane cockpits. The firings amount to about 7.9 percent of the 48,000 workers at the world's biggest producer of chips used in computer modems.