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GLOBAL MEDIA AND CORPORATE RELATIONS NEWS
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One Asian Tiger Roars as the Others Roll Over and Play Dead
For the first half of 1998, U.S. electronics exports to Asia dropped 12% in
the face of various economic crises and currency devaluations in the
Pacific Rim that saw country economies falling like dominos. The culprits:
Indonesian imports down 64%, Korean down 37%, Thai down 26%, and Japanese
imports down 14%. So how did the U.S. semiconductor manufacturers fair
overall? Total semiconductor sales worldwide were only down .38% because
Eastern Europe, Mexico, Canada and China increased their purchases at the
expense of their Asian counterparts. China, one of the Asian Tigers,
escaped the crisis conditions unscathed, actually increasing their imports
of U.S. semiconductor products by 50% during the first half of this year
according to industry sources.
China's tight control over its currency allowed it to escape the problems
that slashed fifty cents on the dollar out of the other Asian Tiger
currencies. While the other countries worried about currency devaluations
and layoffs in industry, China quietly ramped up production in their three
"golden" markets: telecommunication, consumer electronics and home
appliances grabbing market share along the way.
Our feature company this month is Micronics International, Inc (OTC:BB
MCIK). Micronics International (MCIK) has been undervalued with the recent
Asian crisis driving stocks lower. Timing is right for Micronics
International (MCIK) to rocket upward propelled by a burgeoning Chinese
Their current mission is to take advantage of the large Chinese government
incentives to moev electronic manufacturing from the coast to the interior
of the country. Micronics is locating their new offices in the heart of
these new centers of industry. The company will be perfectly positioned for
a buy-out or merger with a larger U.S. semiconductor distributor looking
for an established marketing channel into China, soon to be the worlds'
biggest market for semiconductor products.
Micronics (MCIK) is the Second Largest U.S. Distributor of semiconductors
into the Chinese telecommunications, consumer electronics and home
appliance manufacturing sectors. The company has established both close
relationships with the government and permanent offices within their
borders. The Chinese must import 94% of integrated circuit needs and their
buying has INCREASED 50% during the Asian Crisis!
Micronics (MCIK) is rocketing upward because:
* The 1998 Chinese import market for chips? Over six billion units.
* First half of 1998 showed a 50% increase in U.S. semiconductor imports
into China, 10% higher than was predicted by industry insiders.
* Industry forecasts for semiconductor sales: $120 billion 2005, $550
billion 2010, World's largest market by 2015.
* A $50 billion plus semiconductor market in China is projected to grow at
a 40% rate the next seven years!
* The semiconductor market has grown steadily, 25% per year, for the last
ten years in lockstep with increased U.S. imports into China!
* Over 60 years of combined semiconductor marketing experience among the
* Micronics has excellent government and local factory contacts in China
through a professional sales force.
* The low cost provider to the market through strategic purchases of key
* Long term relationships with U.S. proprietary chip manufacturers and
smaller U.S. distributors focusing on telecommunications, computers and
energy conservation, Micronics' key markets.
* The U.S. semiconductor companies have a solid 10% of the China market
* Very few American distributors are willing and able to crack the China
distribution market. The only competitor of note is Arrow Electronics who
does approximately $120 million in sales a year in China.
* Many U.S. companies want in China, Micronics is positioned as a possible
acquisition or marketing channel.