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July 27, 2000 RELEASE

Release

Hyundai, Samsung, and STMicro Climb in Semiconductor Rankings
Top ten companies' sales surge 37% in 1H00

Scottsdale, Arizona -- July 27, 2000 -- The first four positions in the worldwide top ten semiconductor supplier rankings remained unchanged in the first half of 2000 compared to 1999. However, there was significant movement in the remainder of the rankings (see figure below). According to statistics recently generated by IC Insights, first-half 2000 changes in top ten positioning include:

Samsung moving from 6th to 5th,
STMicroelectronics gaining two positions from 9th to 7th,
Hyundai penetrating the top ten list by jumping six spots, and
Philips dropping out of the top ten ranking

Samsung rode the DRAM market surge in the first half of 2000 to grow almost 50 percent. Full-year 2000 semiconductor sales from Samsung are expected to approach $9.0 billion.

STMicroelectronics enjoyed strong growth in its flash memory, analog, and mixed-signal product lines in the first half of 2000. ST is expected to continue its aggressive approach to the semiconductor industry and has established a $3.0 billion budget for capital expenditures in 2000 (which could represent 35-40 percent of its 2000 sales).

Hyundai entered the top ten ranking for the first time in the first half of 2000, displacing Philips and grabbing the 8th spot. While much of the company's spectacular 232 percent 1H00/1H99 growth rate is due to its merger with LG Semicon (another large DRAM producer) in mid-1999, Hyundai has also benefited from the first-half 2000 DRAM and flash memory market upturns.

Although Philips dropped out of the top ten ranking, it registered excellent first half 2000 results. The company displayed a 36 percent jump in 1H00/1H99 semiconductor sales as well as a strong 13 percent 2Q00/1Q00 sequential increase. However, even with the additional sales from its purchase of VLSI Technology in May of 1999, it fell short of making the 1H00 top ten list.

IC Insights expects a 17 percent increase in the worldwide semiconductor market in the second half of 2000 compared to the first half of the year, with the full-year 2000 market forecast to be 35 percent larger than in 1999. Strong second half of 2000 PC, cellular phone, and consumer system (e.g., Sony PlayStation) sales are expected to give the semiconductor producers their best year since 1995.

About IC Insights

IC Insights, Inc., based in Scottsdale, Arizona, is dedicated to providing high-quality, cost-effective market research for the integrated circuit industry. Founded in October 1997, IC Insights offers coverage of global economic trends, the IC market forecast, capital spending and fab capacity trends, product market details, and technology trends, as well as complete IC company profiles and evaluations of emerging markets for ICs.