Applied Materials, the world's top maker of chipmaking tools, posted US$1 billion in China sales in fiscal 2004, chief executive officer Mike Splinter said Tuesday as he waved off hints of a looming industry downturn.

The figure for the fiscal year just ended represented 10 to 15 percent of the U.S. giant's global total, Splinter told reporters at a signing ceremony in Shanghai.

Applied Materials' chairman James Morgan said in June that China sales were hitting new records, posting the largest amount of dollar growth they had ever seen.

"Our sales in China reached US$1 billion in 2004, and I expect the industry to continue to grow," Splinter said.

"There are lots of worries about a slowdown but there have been no real indications. People are, however, more cautious."

The U.S. executive did not offer a revenue comparison, but previously published figures suggest a massive increase.

According to Applied's Web site, revenue from the entire Asia-Pacific region - including China - came to just US$527 million in fiscal 2003, which ended Oct. 26.

The Shanghai Daily reported Tuesday that Applied Materials raked in US$375 million in revenue from China in fiscal 2003.

China, whose US$30 billion semiconductor market is the world's fastest-growing, has emerged as a bright spot for tech firms.

Chipmakers are building capacity rapidly in China. The country's top maker of made-to-order chips, Semiconductor Manufacturing International Corp., is preparing to boost capacity by half over the next year.

That comes amid signs of an industry downturn that surfaced three months ago, with bellwethers such as Intel Corp. and Texas Instruments Inc. warning of slowdowns as PC and mobile phone makers try to clear unsold inventories.

Global semiconductor sales rose 1 percent to US$18.4 billion in September from August, near the low end of the historic range, the Semiconductor Industry Association said Monday.

(Shenzhen Daily/Agencies)