A survey of 20 major semiconductor companies in Hong Kong and China -- the two economies most affected by the SARS epidemic -- shows the majority have not experienced negative effect on their businesses but 40 percent believed the June quarter would be different, Gartner said in a report.

"A number are also concerned that the slowdown in vendor and client communication will hurt their business in both the mid- and long-term," said Dorothy Lai, Gartner's principal semiconductor analyst in Hong Kong.

"As the retail business is hit, domestic consumer PC and mobile phone demand may also slow down in Hong Kong and China," Lai said.

According to the report, 40 percent of the respondents to Gartner's survey "think that SARS might hurt them by as much as 15 percent to 20 percent."

Ninety percent of the respondents in Hong Kong intend to lower their sales forecast if the Severe Acute Respiratory Syndrome (SARS) outbreak continues in the months ahead.

The flu-like virus has claimed at least 253 lives worldwide and infected more than 4,460 people.

SARS is believed to have originated in the southern China province of Guangdong in November.

SPACE.WIRE