09.21.2001
Chipsets among first to be hit, VIA downgraded

• Development: Our sources indicate that PC related downstream companies are extremely reluctant to buy components, due to (1) looming uncertainty over the US attack and its impact on consumer demand and the macro economy in 4Q01, and (2) logistics issues subsequent to both the US attack and typhoon Nari.

• Analysis: Firms selling PC related components to downstream companies are likely to suffer first. Concurrently, recent discussions with VIA Technologies suggest that Sept. revenues are likely to disappoint.

• Primasia View: Prompted by recent events and the likely impact on PC shipments in 2H01, we have adjusted down our 2001 revenue and profit forecasts on VIA by 10% and 23%, respectively (’01 EPS forecast now set at NT$4.79).