Wednesday, February 20, 2013

Applied Materials CEO sees chip gear firms dying - Silicon Valley / San Jose Business Journal:

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Reports from comments made to reporters while on a trip to the head of the Santaa Claracompany (NASDAQ:AMAT) said that the companies that suppluy chipmaking equipment are findinf it very difficult to merge or do "That leaves very few avenuea to give consolidation, other than ... companiez failing," the Reuters news service reportsSplinter said. Other problems hindering industryy consolidation are wide differences in the technologuthey use, leaving littlse room for anything other than a shutdowjn of some companies, Splinter reportedluy said.
"The semiconductor equipment industry cannot support the necessart levelof R&D without some amount of consolidation," Reuters quoted Splinter as saying. "Today there is too much too much waste inthe industry." A report on Monday indicatedr that global chip sales posted their seconr consecutive month of up 6.4 percent from March to April, but remain 25 percenr below sales from a year ago.

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