The Intel Corp profit warning last week (CI No 3,361) has shaken makers of semiconductor fabrication equipment, causing a frenzy of selling on the Japanese stock exchange. Combined with the affects of the Korean financial crisis and reduced capital spending by Japanese chipmakers, such companies are anticipating a sudden business decline, according to a report in the Nihon Keizai Shimbun. Orders received by Japanese semiconductor fabrication equipment makers in December were down 20.9% from the same time a year ago. There has been heavy selling of stocks of companies such as Nikon Corp, Tokyo electric Ltd and Advantest Corp, promoted by the Intel announcement. Nikon has reduced its projected stepper shipment forecast for the current term by 50 to 450. Advantest has predicted a fall in earnings for the next financial year which will contrast heavily with its expected 70% rise in pre-tax profit for the current period. Tokyo Electron will cut its capital investment in half next fiscal year to around $196.1m, in anticipation of falling demand for chipmaking equipment.
