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Politics : Formerly About Applied Materials

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Jan 2 9:30 AM EST

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To: Jeffrey D who wrote (30807)	6/3/1999 1:27:00 PM
From: Duker	of 70976

Samsung to build a new 256-Mbit DRAM production line in Korea A service of Semiconductor Business News, CMP Media Inc. Story posted noon EST/9 a.m., PST, 6/3/99 By Jack Robertson WASHINGTON -- Samsung Electronics Co. plans to construct a new 256-megabit DRAM production line in Korea in 2000, at an unspecified level of capital investment, a spokesperson told SBN today. Samsung makes limited quantities of 256-Mbit chips on its most advanced current lines in Kiheung, Korea. The new 0.18-micron Line 9, also being installed in Kiheung, is expected to be capable of mass-producing the 256-Mbit chips.. The spokesperson didn't elaborate on any further details of the upcoming 256-Mbit line. However, industry sources believed it could use the next-generation 193-nm-wavelength deep-ultraviolet lithography system to continue the DRAM shrink race through the 256-Mbit generation. All the new capacity is expected to keep the Korean firm in a dominant global position for the next generation of DRAMs. It would match the production ramp-up of Micron Technologies Inc. and the newly-announced production hike in new generation DRAMs by NEC Corp. The investment in the 256-Mbit plant would be part of a new $3 billion stock rights sale that Samsung is floating on the market this month. The spokesperson said the total capital expenditure for the new DRAM line hasn't been set yet. A portion of funds would also be used to expand existing chip lines, although no details were given. The remainder of the cash will be used to retire existing debt, and expand production lines for telecommunications equipment. An erroneous wire service story Wednesday stated that Samsung would use the entire $3 billion for semiconductor capital investment. Confusion remains over the level of Samsung Electronics' projected capital spending in semiconductors for 1999, however. Officials at Samsung Electronics America Inc. in San Jose said chip expenditures this year would be just under $1.8 billion. But the company spokesperson in Seoul said that semiconductor capital investment will be $1.2 billion.

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