Philips sees chip fab utilisation falling in Q3

AMSTERDAM, July 17 (Reuters) - Dutch Philips Electronics NV said on Tuesday it expected the utilisation rate at its semiconductor factories to fall to 35 percent of full capacity in the third quarter from 45 percent in the second quarter.

Company President Gerard Kleisterlee told a news conference the decline was the result of Philips' plans to keep inventories in control. He suggested the third quarter may be the bottom.

"There's no driver for an upturn, but there's also no reason to be further depressed," Kleisterlee said.

Philips is Europe's largest maker of consumer electronics and lighting and number three in semiconductors.

Copyright 2001, Reuters News Service