Contents. Semiconductor DQ Monday Report Issue 38

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1 Semiconductor DQ Monday Report Issue 38 Introduction to Semiconductor DQ Monday Report Semiconductor DQ Monday Report allows Gartner Dataquest analysts to share opinions and analysis of key events as they unfold. To learn more about Gartner's industry-leading products and services, we encourage you to contact us at: or contact your local account executive. You can also visit us at About Gartner Gartner Dataquest is the recognized leader in providing the high-technology and business communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, e-business, and professional services sectors of the global IT industry. Gartner provides unrivaled thought leadership for more than 10,500 organizations, helping clients achieve their business objectives through the intelligent and efficient use of technology. Additionally, Gartner helps technology companies identify and maximize technology market opportunities. Gartner's technology content and strong brand reach IT professionals globally through Gartner Research, its research and advisory unit; Gartner Services, its custom consulting unit; Gartner Events, including Gartner's renowned Symposia; and at Contents DRAM Spot Market Pricing... 2 Memory Market Pricing, September Autodesk Introduces Buzzsaw Professional... 6 Semiconductor Equipment Book-to-Bill at 1.14 for August... 7 Chartered Ready for the 300-mm Manufacturing Wagon... 7 Nanya to Boost Capacity to 73,000 Wafers in 1Q In the News... 9 New Reports... 9 Get "Alert"ed to the Latest in Semiconductor Research Press.gartner.com Upcoming Gartner Conferences Gartner, founded in 1979 and headquartered in Stamford, Connecticut, achieved fiscal 2001 revenue of $963 million. Gartner's 4,000 associates, including 1,200 research analysts and consultants, are in more than 90 locations worldwide Gartner, Inc. 1

2 2 Semiconductor DQ Monday Report, Issue 38 DRAM Spot Market Pricing Table 1 shows the average spot market pricing for DRAM as tracked by Gartner Dataquest for the weeks ending 13 September and 20 September. Table 1 DRAM Spot Market Pricing (U.S. Dollars) 13-Sep Sep-02 Weekly Change (%) Low Range High Range Low Range High Range Low Range High Range 64Mb (8Mbx8 PC133) Mb (16Mbx8 PC133) Mb (16Mbx8 DDR266) Mb (32Mbx8 PC133) Mb (32Mbx8 DDR266) Mb (8Mbx16 RDRAM 400MHz) Source: Gartner Dataquest (September 2002) Gartner Dataquest Analysis Last week spot pricing experienced declines up to 14.5 percent. Figure 1 shows a 52-week history of average DRAM spot pricing for the six key devices tracked. Figure 1 Average DRAM Spot Pricing, 52-Week History U.S. Dollars Mb PC-133 Average 128Mb PC-133 Average Mb PC133 Average 128Mb DDR266 Average 256Mb 266DDR Average Sep 19-Oct 9-Nov 30-Nov 21-Dec 11-Jan 1-Feb 22-Feb 15-Mar 5-Apr 26-Apr 17-May 7-Jun 28-Jun 19-Jul 9-Aug 30-Aug 20-Sep 128Mb RDRAM Average Source: Gartner Dataquest (September 2002)

3 Semiconductor DQ Monday Report, Issue 38 3 Pricing on the mainstream 128Mb 16Mbx8 PC133 device was down 6.1 percent for low-end pricing for the week, while high-end pricing was down 4.9 percent. Pricing ended the week in the range of US$1.55 to US$1.95. Pricing on the higher-density 256Mb 32Mbx8 PC133 device was down 14.5 percent for low-end pricing for the week, while high-end pricing was down 10.9 percent. Pricing ended the week in the range of US$2.35 to US$2.85. Pricing on DDR SDRAM 128Mb devices was down 6.2 percent for low-end pricing during the past week, while high-end pricing was down 5.6 percent. Pricing ended the week in the range of US$3.05 to US$3.40. Pricing on the 256Mb 32Mbx8 DDR266 was in the range of US$6.20 to US$6.70 low-end pricing was down 4.6 percent while high-end pricing was down 4.3 percent on the week. RDRAM pricing was flat for low-end pricing while high-end pricing was down 1.0 percent during the week. Pricing was in the range of US$4.80 to US$5.05. In the second half of last week, brokers and distributors were clearing inventory in preparation for a long holiday weekend, helping to push pricing down. The market still has no clear signals to follow and as such is continuing to drift down. Some DRAM vendors are saying they are seeing a small increase in demand coming from OEMs, but it is too early to say whether this is a major trend. Memory Market Pricing, September 2002 By Andrew Norwood (andrew.norwood@gartner.com) Memory Pricing Stable Across the Board Almost without exception, contract pricing for memory devices has been stable in recent weeks. Where changes have occurred, price movements have been modest, with DDR DRAM pricing marginally higher and SDRAM pricing mildly weaker in the contract space. Flash and SRAM pricing has been essentially flat from August to September. Memory device demand is seasonally strong, meaning it is in the normal range of increased demand levels ahead of the fourth quarter, while vendors have ample supply at their disposal, at least in the short term. However, the dawning realization is that the move toward higher average device densities that is occurring in the market will soon begintoburnoffexcessmemorysiliconcapacity. Gartner Dataquest Analysis DRAM DRAM contract pricing in the first half of September, continuing the trend of last month; SDRAM pricing is down, and DDR SDRAM is up. During the past two months DRAM vendors have been increasing DDR pricing every two weeks and are expected to do so again in the second half of September. The firmness in DDR pricing at the expense of SDRAM ASPs is a reflection of the rapid move to the higher-performance DDR SDRAM in the PC space, leaving vendors struggling to adjust production mix. This mismatch between technology supply and demand is temporarily deflecting attention away from what has been a painfully weak PC market to date. Interestingly, talk has been of increased DRAM order activity in recent days, which some are attributing to a pickup (albeit a late one) in PC production levels. If PC production continues to demonstrate relative strength, another factor that may come in to play and affect DDR DRAM pricing is a fear that inventory levels throughout the supply chain are perilously low. Localized panic buying to satisfy short-term production needs may push prices up in coming weeks,butoncetheproductmixissuesareresolved,littlesuggeststhatafirmdram price environment can continue toward the end of the year.

4 4 Semiconductor DQ Monday Report, Issue 38 Table 2 Average Contract Pricing for Selected Memory Devices (U.S. Dollars) South Korea Japan Taiwan China/Hong Kong Europe Americas Worldwide Device Low High Low High Low High Low High Low High Low High Low High NOR Flash 32Mb 2Mbx16-TSOP Mb 4Mbx16-TSOP Mb 2Mbx16-TSOP N/A N/A N/A N/A N/A N/A N/A N/A NAND Flash 64Mb 4Mbx16-TSOP N/A N/A Mb 8Mbx16-TSOP N/A N/A Mb 16Mbx16-TSOP N/A N/A Mb 32Mbx16-TSOP N/A N/A N/A N/A N/A N/A SRAM Asynchronous 1Mb 128Kx8-70ns 5V Mb 256Kx8-70ns 3V (CSP) Mb 512Kx8-15ns 3V Mb 512Kx8-70ns 1.8V (CSP) Mb 512Kx8-70ns 5V Mb 512Kx16-70ns 1.8V/3V (CSP) Mb 1024x16-70ns 1.8V/3V (CSP) N/A N/A SRAM Synchronous 4Mb N/A N/A Mb N/A N/A Mb N/A N/A Flash/SRAM Combo 2Mb x 16 Flash + 256Kb x 16 SRAM MCP N/A N/A Mb x 16 Flash + 256Kb x 16 SRAM MCP N/A N/A N/A N/A N/A N/A Mb x 16 Flash + 512Kb x 16 SRAM MCP N/A N/A N/A N/A

5 Semiconductor DQ Monday Report, Issue 38 5 Table 2 (Continued) Average Contract Pricing for Selected Memory Devices (U.S. Dollars) South Korea Japan Taiwan China/Hong Kong Europe Americas Worldwide Device Low High Low High Low High Low High Low High Low High Low High DRAM 128Mb (16Mbx8-133MHz) Mb (16Mbx8-266MHz DDR) Mb (8x16Mb RDRAM 800MHz) Mb (8x32Mb RDRAM 800MHz) N/A N/A Mb (32Mbx8-133MHz) Mb (32Mbx8-266MHz DDR) N/A = Not available Source: Gartner Dataquest (September 2002)

6 6 Semiconductor DQ Monday Report, Issue 38 Flash NOR-Based Flash NOR Flash contract pricing has remained stable in recent weeks. It may be too early to think about the "s" word (shortages) or the "a" word (allocation), but some in the industry are beginning to wonder out loud about how long the limited supplier base can meet sharply higher demand for high-density (64Mb and 128Mb) NOR flash. Watch out for lead-time push-outs as an early indicator of a tighter market in the first half of NAND-Based Flash and SRAM No significant price movements were witnessed during the past few weeks. By Richard Gordon (richard.gordon@gartner.com), Andrew Norwood (andrew.norwood@gartner.com), Hee-chan Lee (hee-chan.lee@gartner.com), Dorothy Lai (dorothy.lai@gartner.com), Jamie Wang (jamie.wang@gartner.com) and Hiroyuki Shimizu (hiroyuki.shimizu@gartner.com) Autodesk Introduces Buzzsaw Professional Autodesk introduced Buzzsaw Professional, an online project collaboration service designed to handle effective communications and management of project information throughout the entire building life cycle. The service takes the collaboration functionality found in the Buzzsaw service and integrates construction management and administrative workflow features for precise document tracking and communication during construction. Source: Company Press Release Gartner Dataquest Analysis When Autodesk first introduced Buzzsaw, its primary value proposition was as a collaboration tool, targeting Autodesk's core customer base of architects and designers. Buzzsaw would let those groups share its design data more smoothly with other members of the construction project team. Leveraging Autodesk's brand strength in the design community was key to Buzzsaw's strategy for penetrating the construction industry with its collaboration services. Since that time, Buzzsaw has seen building owners become more interested in participating in both design- and construction-stage collaboration. As a result, Buzzsaw is adding more owner-relevant capabilities to complement its design collaboration system. Buzzsaw Professional will include additional high-level project management functionality to meet the additional needs of the building owner, such as change order reporting, scheduling impact of project changes, request for information logs and other project dashboard metrics. Despite the demise of the dot-com craze, online collaboration certainly has had an impact on the AEC community. Though adoption has definitely been slow not atypical for technology in the construction industry AEC users are gradually migrating toward using online collaboration. Buzzsaw was able to establish a foundation in the market through design collaboration services that leveraged Autodesk's familiarity with and competencies in CAD file sharing. As nondesigner project participants were introduced to the Buzzsaw offering, Autodesk began to see growing interest from owner-operators that recognized the benefits of project collaboration.

7 Semiconductor DQ Monday Report, Issue 38 7 It's not just design professionals driving adoption of the Buzzsaw collaboration technology, but building owners are increasingly the motivators. Perhaps another contributing factor to this trend is the result of recent turmoil in the economy, causing the balance of power to return to building owners. Regardless, with owner-operators taking charge of more technology decisions, Autodesk has wisely seized an opportunity to broaden the reach of its Buzzsaw collaboration services. By Laurie Balch (laurie.balch@gartner.com) Semiconductor Equipment Book-to-Bill at 1.14 for August The SEMI book-to-bill ratio for semiconductor equipment in North America dropped to 1.14 in August, down from 1.22 in July. Three-month average billings were US$1.1 billion, down from US$1.2 billion in July. Billings increased to US$981.2 million from US$969.1 million the previous month. Gartner Dataquest Analysis We have been hearing about declining bookings in the wafer fab equipment industry, and this month's book-to-bill ratio seems to support that. This is the first time in nearly a year that three-month average bookings have declined, and combined with weakness in semiconductor demand, as well as reports of capital spending reductions and project delays, it seems to indicate that semiconductor manufacturers are being extremely cautious about increasing capacity. While an analysis of the numbers indicates that August bookings were probably off about 20 percent from July, we have to remember that August is traditionally a "dog" month, that is, business activity slows in response to summer vacations and in anticipation of the return to "normal" conditions after Labor Day. August has no special significance in fiscal calendars, being the second month of the fiscal quarter for most companies, as well as the first month of the quarter for Applied Materials. Hence, real pressure for bookings is nonexistent. So we will have to wait until September's numbers to be able to evaluate the real nature of the slowdown in bookings. Until then, we remain cautious and would not be surprised if we see another drop in the book-to-bill ratio next month. By Bob Johnson (bob.johnson@gartner.com) Chartered Ready for the 300-mm Manufacturing Wagon Chartered reported that it will begin equipment installation for its 300-mm wafer fab next month, as part of its planned effort to move the Fab 7 facility into production by the third quarter of The company is working with its tool vendors to rapidly get its 300-mm fab ready. As such, test wafers will not be running in Chartered's own fab but rather in several of its vendors' sites worldwide. Gartner Dataquest Analysis Chartered, the world's third-largest (but a distant third) semiconductor foundry, has lost its former luster and shine. Its stock price continued to nose-dive after the latest warning of its fourth-quarter earnings assessment. Suffering from the severity of the worst industry downturn ever, the company has since been scrambling to get its 300-mm fab off thegroundinanefforttoclosethegapwithitspredominantrivals. Last week, TSMC cut its overall output capacity of its 300-mm fab because of lethargic demand. Although Chartered claimed to be on track in moving its Fab 7 plant into production by the third quarter of 2003, the actual rate of the volume ramp will depend on the subsequent market demand assessment and its committed level of investment. As of the middle of this year, approximately US$210 million was already spent in Fab 7.

8 8 Semiconductor DQ Monday Report, Issue 38 To equip the fab fully with 300-mm capability will cost the company about US$3.5 billion. The estimated cost to install the pilot line will be about US$350 million. Chartered's present cash balance is approximately US$831 million, with additional credit facilities of US$620 million. The recent announcement of its right offering to raise an additional US$633 million will ensure the company with have ample liquidity to accelerate any ongoing investment needs. However, is investing in 300-mm really crucial at this moment? The semiconductor industry is paying a premium for stepping into the 300-mm arena. Besides the higher wafer and machinery input costs incurred, manufacturers are constantly faced with the instabilities and unproven leading-edge process technology integrated from first-generation equipment. Nevertheless, despite this and the cyclical slowdown, it is still important that top-tier foundry players carry out at least the pilot lines to complete the vital learning curve, in preparation for any possible future upswing. Although having 300-mm capability will be the key differentiator in the marketplace, Chartered ultimately still must actively seek for technological alliances or strategic collaborations to strengthen its manufacturing leadership positioning further. By Kay-Yang Tan (kay-yang.tan@gartner.com) and Ben Lee (ben.lee@gartner.com) Nanya to Boost Capacity to 73,000 Wafers in 1Q03 DRAM manufacturer Nanya Technology, based in Taiwan, will boost its capacity to 73,000 wafers per month in the first quarter of 2003 from its 8-inch wafer fab, compared with 65,000 to 67,000 wafers this month. Nanya has purchased most of the equipment needed, and the equipment will help Nanya fulfill increasing orders from international OEMs in the interim, before its 12-inch fab ramps up, which will enter test production in the first quarter of Gartner Dataquest Analysis Struggling after the slow year of 2001, the whole semiconductor industry looked hopefully to a recovery in However, in the DRAM market, with weaker macroeconomic growth slowing the replacement market, PC unit shipment growth will be very limited. With the increase of built-in DRAM to 256MB and DDR SDRAM technology being phased in, DDR prices are expected to be relatively stable, despite DRAM makers finding the process migration from 0.18-and 0.17-micron to 0.15-, and 0.13-micron going less smoothly than expected. If predictions for PC shipments in the fourth quarter are still unclear, then DRAM pricing is a puzzle missing a piece. Looking at market demand, PC-based applications are weakening while niche consumer electronics and the communications market are becoming more active. From the industry point of view, the weak economy created fierce competition in the DRAM market. Very few DRAM makers were able to sustain large-scale production. Taiwan's DRAM makers still seem to have a good chance to grow if they handle their capital well, invest in technology wisely and expand sales opportunities to the OEM market and China. In 2002, DRAM pricing was not as volatile as last year. However, the slow market recovery forced Nanya to lower its financial targets last August. Nanya, the largest DDR DRAM maker in Taiwan, is going through shifts in technology, causing limitations in capacity. Once the technology conversion is complete and if the traditional high season successfully warms up, it can still expect a stable profit in the fourth quarter. By Ben Lee (ben.lee@gartner.com)

9 Semiconductor DQ Monday Report, Issue 38 9 In the News Infineon Sets Five-Year Plan Infineon Technologies has set out a strategic five-year plan, "Agenda 5-to-1," and a series of goals for its business units. Infineon wants to become one of the top four semiconductor manufacturers by 2007 and in each of its five business groups the company plans to be a top three player, the company said. In terms of profitability, in each of its business units Infineon aims for a top two position. "Agenda 5-to-1 is our response to the evolving market, and we intend to apply it consistently during the next five years," said Ulrich Schumacher, president and chief executive officer of Infineon, in a statement. "To achieve the ambitious goals of Agenda 5-to-1, we must gain market share in each of our targeted markets and expand our solutions business, which will significantly enhance our profitability. We believe that our Agenda 5-to-1 will be vital to ensure Infineon's longterm success." RF Micro Opens Facility in Beijing RF Micro Devices said that production shipments have begun from a test and tape and reel facility in Xingwang Industrial Park, Beijing. The facility is intended to support handset manufacturers in China and international handset manufacturers with operations in China. Construction of the facility began last November, and it serves as the final stage of assembly for components manufactured at RF Micro's Greensboro, North Carolina, campus. By the end of the year, RF Micro Devices expects the facility will test, tape and reel more than 10 million modules. Qualcomm Reports Strong Chip Demand Qualcomm said it has raised their guidance for chip shipments in its fourth quarter, citing strong demand, particularly for its advanced phone chips. Qualcomm said it expected to ship about 20 million chips in the quarter ending 29 September, up from previous guidance of 18 million to 19 million chips. The company said it expects to ship significantly more than 20 million chips in the quarter ending 29 December. The company shipped 16 million chips in its fiscal third quarter. New Reports Commodity IP: Market Share Is Critical The commodity intellectual property (IP) market is growing faster than the IP market average. It has taken its first major step toward consolidation, to the benefit of users. (Gartner Dataquest Perspective, SEMC-WW-DP-0177, 18 September 2002, US$495) Update: SOI Wafer Market Continues Its Growth The results of Gartner Dataquest's latest survey of the silicon on insulator (SOI) wafer market indicate demand grew 16 percent in 2001 over the previous year and reached 28 MSI (including captive demand). (Gartner Dataquest Alert, SEMC-WW-DA-0054, 17 September 2002, US$95) TSMC Files Applications for IC Fab in China On 9 September, Taiwan Semiconductor Manufacturing Co. (TSMC) announced that TSMC filed its application with the Investment Committee of Taiwan's Ministry of Economic Affairs on an IC fab project in China. (Gartner Dataquest Alert, SEMC-WW-DA-0055, 17 September 2002, US$95) Semiconductor Manufacturing Capacity: Revving the Engine Again Worldwide leading-edge capacity utilization reached 87.1 percent in the second quarter of 2001; it will pass 90 percent by year-end 2002, setting the stage for robust capacity additions in 2003 and (Gartner Dataquest Focus Report, SCEM-WW-FR-0137, 16 September 2002, US$1,295)

10 10 Semiconductor DQ Monday Report, Issue 38 China/Hong Kong Semiconductor Industry Trends The semiconductor market in China/Hong Kong will grow faster than the rest of the world at a CAGR of 15 percent from 2001 through (Gartner Dataquest Market Trends, SCSI-AP-MT-0114, 13 September 2002, US$1,495) Get "Alert"ed to the Latest in Semiconductor Research Would you like to be notified by when the latest semiconductor research has been published? If so, all you have to do is follow these simple instructions to set up an "Alert." Click the button "Alerts" at the bottom of the gartner.com home page. A small screen will open with a button in the top right corner labeled "Create/ Modify Personal Alert." Click on this button. In the field labeled "Create/Modify Alert Name:" enter "semiconductors." In the field labeled "Search for the Following Words:" enter "semiconductor." Under "Search Content:" click on "All Content." (Please be advised that if you search "All Content" you may not have access to the publication unless you subscribe to its respective cluster.) Under "Search the..." select "Title," "Full Text" and "Summary." Under "Topic" select "Semiconductor Market Data." Under "Type" select "Market Analysis," "Strategy Trends," "News," and "Market Statistics." Leave "Region:" and "Industry:" blank. Under "Send This Alert To:" type your address. Under " frequency:" select "Daily," "Weekly" or "Monthly." Click on "Update" at the bottom of the page. Press.gartner.com Press.gartner.com is designed to guide you through the correct procedure of obtaining a Gartner Dataquest analyst's quote. If your company would like to issue a press release quoting one of our analysts, you must submit your request to quote.requests@gartner.com. Standard requests will be approved within 48 hours. Upcoming Gartner Conferences Gartner and Gartner Dataquest host the IT industry's most respected conferences and strategic forums in locations around the world. For more information, please contact Gartner Worldwide Events from within the United States at or visit the Gartner Web site at gartner.com. Gartner Dataquest Technology Pipeline: From Semiconductors to User Adoption 5 Through 7 November Los Angeles Looking for answers that will shed some light on the future of the semiconductor industry? Need to know when businesses and consumers will start buying again? Searching for information that will help your company keep up with escalating demand 24x7?

11 Semiconductor DQ Monday Report, Issue Plan to attend Gartner Technology Headlight, 5 through 7 November. By consulting with the top Gartner analyst team and getting advice from recognized industry experts, you'll emerge from this conference with a sound technology strategy that will help your organization meet the demands of your established customer base as well as address the needs of emerging customer segments. And, you'll get to see the latest technology from our corporate sponsors and IT vendor demonstrators for hands-on learning about innovative products and services. As a user of technology you'll learn how to do the following: Get the most for your technology purchasing dollars Deploy technology infrastructure for competitive business advantage Maximize enterprise IT efficiency at the lowest TCO Understand the impact of emerging technologies Plan for orderly transitions Prepareforthefuture As a vendor of technology you'll learn about the following: Trends and directions of key technology markets The real-time enterprise Mobility and wireless Content management IA-32 vs. IA-64 vs. RISC Policy-based computing and grid computing As an investor in technology you'll learn how to do the following: Review what technology areas are hot or will be Prioritize investment opportunities Understand key survival and success criteria The following should attend: Strategic planners Server, storage and network planners Mobile computing planners Data center managers, administrators and architects Server and network operations managers Procurement managers IT managers CIOs IS executives Business executives Engineering project managers Component and system vendors IT vendor marketing VPs

12 12 Semiconductor DQ Monday Report, Issue 38 IT vendor strategic planners IT vendor product marketing managers Market and financial analysts You'll learn how to understand the following semiconductor market opportunities: Wired communications semiconductor outlook Design starts Barometer to future ASIC/SOC revenue What are the top-selling devices, and what is driving demand? What are the key technologies in next-generation products? How can semiconductor manufacturers best capitalize on this opportunity? Semiconductor manufacturing outlook: When will the upturn start? Pricing Early-bird discount (if payment is received by 25 September) is US$1,295 for Gartner clients, US$1,595 for nonclients. Standard price is US$1,495 for Gartner clients, US$1,795 for nonclients. Client discount applies to clients retaining more than US$5,000 in contract value. Why Gartner Technology Headlight Is No. 1 Only Gartner Dataquest can put on an event of the scope of Technology Headlight This conference offers qualitative and quantitative views of technology markets and technology from end-user and vendor perspectives. The industry's largest analyst team, Gartner deploys more than 500 dedicated, full-time analysts to provide an unrivaled depth of industry expertise. Gartner Technology Headlight showcases the industry's most exciting products. You'll walk away with a short-list of vendors and products, dramatically shortening your procurement cycle. This is the hard data only Gartner Dataquest can provide for quantitative analysis of the technology marketplace. In this tight economic environment, you simply cannot afford to make anything less than the best technology investment. Gartner Dataquest can guide you to the most effective enterprise infrastructure, technology and systems management software, as well as the emerging business applications that will add the most value. For more information, please contact Ashley Pearce at (in the United States) or (outside the United States). You can ashley.pearce@gartner.com and check out the Web site at gartner.com/2_events/ conferences/scon6/scon6.jsp

13 Semiconductor DQ Monday Report, Issue Semiconductor and Emerging Technology Conference What Will Sustain Growth? 6and7November Martinez Hotel, Cannes, France Consumer demand for semiconductor-based technology is poised for explosion. Renewed corporate spending is on the horizon. How should your organization respond? Technology is emerging: wireless LAN, biometrics and MPEG4. Traditional sectors have a different business dynamic. What impact will this have on your IT strategy? This conference will examine the entire semiconductor industry supply chain and analyze high-impact, emerging technologies that will shape the future. Last year this event was oversubscribed so book early to avoid disappointment. This year's event will coincide with the Gartner Symposium/ITxpo. Attend Gartner's European Semiconductor and Emerging Technologies conference, and you will receive a pass to access the ITxpo show floor. See many of the latest IT products hard at work: in oneplaceatthesametime.and,aswellastheitxpopass,youwillalsobeinvitedto attend the ITxpo cocktail reception on 6 November at no extra cost. This is a great networking opportunity and a chance to meet colleagues, peers and Gartner analysts. What You Will Learn The conference provides a valuable perspective on what will sustain industry growth and why the following emerging technologies will present growth opportunities in the semiconductor industry: Wireless applications Automotive telematics Smart cards and biometrics Digital television Semiconductor intellectual property WhoShouldAttend? Business Executives CEOs, business managers and business strategists from semiconductor vendors and semiconductor industry participants should attend. Sales and Marketing Executives Professionals responsible for directing strategic marketing initiatives for semiconductorbased, and -derived technologies should attend. Technology Strategists Professionals responsible for investigating emerging trends and defining strategies for semiconductor and related technologies should attend. Funding and Investment Analysts Professionals responsible for evaluating and advising on financial decisions related to semiconductor vendors, electronic equipment OEMs and emerging technology startups should attend.

14 14 Semiconductor DQ Monday Report, Issue 38 Pricing Standardpricingisasfollows: 1,050 euros for Gartner clients 1250 euros for nonclients Registrations may be cancelled, in writing, before 23 October; a handling charge of 250 euros will be incurred. Cancellations received after 5 p.m. on 23 October and nonattendance will be subject to the full conference registration fee. Substitutions may be made at anytime before the start of the program. Why Attend? Gather information to make decisions from a source you can trust. Gartner and Gartner Dataquest are recognized for breadth of knowledge, depth of detail and commitment to objectivity. With unrivaled industry expertise, qualitative and quantitative views of markets and technology from end-user and vendor perspectives, you can gain an understanding of semiconductors, market forecasts, consumer attitudes, emerging technology and much more by attending this event. Please direct all inquiries regarding this conference to Pat Pearce You can pat.pearce@gartner.com and check out the Web site at gartner.com/2_events/ conferences/sem1i/sem1i.jsp For More Information... In the United States: In Europe, the Middle East and Africa: In Asia/Pacific: In Japan: Gartner Interactive: The content herein is often based on late-breaking events whose sources are believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of the information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The conclusions, projections and recommendations represent Gartner's initial analysis. As a result, our positions are subject to refinements or major changes as Gartner analysts gather more information and perform further analysis. Entire contents 2002 Gartner, Inc. All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden Gartner, Inc. All rights reserved