But companies said the impact of Severe Acute Respiratory Syndromeshould be brief. Industry insiders warned against exaggerating the disease's fallout.

Texas Instruments stock plummeted 1.81 dollars or 8.88 percent to 18.58 dollars by early afternoon in response to a warning late the previous day that its sales would be hit.

In the first quarter of 2003, Texas Instruments said it had problems selling off a stockpile of wireless semiconductors it had built up in Asian markets, particularly China.

"We believe the weakness in demand is largely due to the ongoing economic impact associated with SARS, and should abate as the health concerns are resolved," Texas Instruments chairman, president and chief executive Tom Engibous said in a statement.

Demand for handsets also had slowed, the group said.

As a result, Texas Instruments said it expected revenue in the second quarter of this year to grow five percent from the first quarter, cutting its earlier forecast for seven-percent growth.

Wedbush Morgan analyst David Wu said the impact of SARS on Texas Instruments should be viewed as a "non-recurring tragic event", no different to other natural disasters.

"We view the semiconductor industry recovery as gaining traction and poised to accelerate between the fourth quarter of 2003 and the second quarter of 2004, he said in a report to clients.

Kevin Rollins, chief operating officer at computer maker Dell, told a conference in New York that his company had already factored in the SARS impact into its forecasts.

The impact "was a little bit overblown in terms of demand as we see it," he said.

"Asia business continues to go very well," Rollins said. "It's not getting any worse but it's not fundamentally better." Dell shares nevertheless retreated 61 cents or 1.91 perecent to 31.28 dollars.

Finnish mobile phone giant Nokia and US technology group Motorola Inc. this week blamed SARS for weaker-than-anticipated Asian sales.

On Tuesday, Nokia warned that sales of mobile phones in the second quarter would be at the low end or below its forecast range of four percent to 12 percent growth, when compared to last year.

"Sales reflect continued general economic weakness in Europe and the US, the impact of currency fluctuations, and the effect of SARS on consumer behaviour, especially in China," it said.

Nokia, whose shares are traded here in the form of American Depository Receipts, fell nine cents or 0.51 percent to 17.62 dollars.

The day before, Motorola blamed SARS for disappointing sales of cellular handsets in Asia.

"This is due to a combination of the impact of the SARS (Severe Acute Respiratory Syndrome) outbreak, which has had a more pronounced impact on consumer purchases of cellular handsets than the company had assumed in its previous guidance, as well as continuing excess levels of inventory from locally based handset manufacturers."

Semiconductor product sales were also hit in Asia, it said, as customers adjusted their inventories to respond to the decline in Asian sales.

"The company is confident that health authorities in Asia will bring SARS under control and that consumer behavior patterns in the region will return to normal," Motorola said.

"However, the timing of a return to normal conditions in Asia is uncertain. The company also is confident that consumers in Asia will then resume their purchases of cellular handsets at levels similar to those prior to the SARS outbreak."

Motorola shares were up four cents or 0.47 percent at 8.60 dollars in early afternoon trade.

According to latest World Health Organization figures, the number of reported probable cases of SARS infections worldwide amounts to 8,430, with 789 deaths.

SPACE.WIRE