06.12.2001
SPIL expects no easy ride in 3Q01

• Chairman of Siliconware Precision Ind. Co. Ltd (SPIL, 2325 'Xi Pin'), Bough Lin has expressed pessimism on the 2001 outlook for the semiconductor industry. He expects no turnaround until the seasonal upturn in August. Recovery in 2H01 will greatly depend on conditions in the US market and global economy. He also indicated that SPIL is likely to report lower monthly revenue in June and set a target to breakeven in 2Q01, which is consistent with our 2001 financial forecast.

• VB Primasia Investment Opinion: We believe that SPIL continues to receive negative indications from customers. We hold to our view that there will be no sharp recovery in 2H01 for packaging companies like SPIL and ASE (2311 'Ri Yue Guang'). We recommend AVOID on this counter as disappointing revenue and profits are expected in 2Q01 as well as continued stock price pressure.

AngelLo@Primasia.com +886-[0]2-2547-8865