-- DJ Japan Silicon Wafer Makers Plan 10% Price Hike - Nikkei --
TOKYO (Nikkei)--Japanese silicon wafer producers plan to raise domestic
shipment prices by around 10% from October - the first rise in three-and-a-half
years, according to the Sunday morning edition of the Nihon Keizai Shimbun
(Nikkei).
The newspaper said rising demand from makers of personal computers and
cellular phones was behind the decision to lift prices.
Shin-Etsu Handotai Co., Sumitomo Metal Industries Ltd. (5405 or J.SMM),
Mitsubishi Materials Silicon Corp. and other major companies will soon start
price negotiations with semiconductor producers.
Demand has increased since the spring. Monthly global demand for 200mm silicon
wafers, the main product, reached a record 3.3 million units in June, 32% more
than the monthly average for 1998, industry officials said.
The wafer's price has fallen 30% in the past three years, to around Y10,000
per unit, amid softening semiconductor markets.
Japanese producers have a 60% share of the silicon wafer market, the Nikkei
said. But recent restructuring has left few opportunities to increase
production. The market will likely further tighten in the fall as demand usually
increases ahead of the Christmas shopping season.
(END) DOW JONES NEWS 08-07-99
08:57 PM- - 08 57 PM EDT 08-07-99
Source DJ - Dow Jones
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