Mattie,
I took some profits today. But I think it definitely hit the bottom at the low 30s. Will be back in again next week.
Telecom equip makers are running hard again today. The smaller players just need some volume, ie efnt, hsac, tern... I am watching them closely now to jump in.
Dsl players, ie rthm (29~), npnt(19~), covd(34~) probably hit the bottom too. In npnt, rthm yesterday but will take profits soon and wait the retest to get back in. CMtn will do pretty well if these dsl behave well. In yesterday but out today too soon.
I picked up some wfr and klic today. Look at wfr's chart. You'll love it.
Some news on flash makers:
Supplies of flash memory have become tight in South Korea,
potentially endangering the rapid ramp of a host of new Internet audio players. In
addition, Korean manufacturers are reporting a sharp upturn in DRAM prices and an
ongoing shortage of LCDs.
The flash shortage is being attributed in part to the fast rise in production of MP3
players here and to the increasing use of flash in other digital consumer devices, such as
cameras and video recorders. Manufacturers also report a scarcity of other solid-state
storage media, including the SmartMedia Card and Multimedia Memory Card.
The shortage comes as major suppliers such as Samsung plan to reduce flash prices
from about $1.50 per Mbyte to as low as $1/Mbyte in the third quarter, as part of a
shift from 16- to 32-Mbit products. However, prices are not expected to rise as
supplies for those parts tighten. Responding to the growing demand, Samsung has
shifted some of its DRAM lines to flash work and nearly doubled its production
capacity for flash.
DRAM prices are again on the rise here and an LCD shortage is expected to continue
well into next year despite the addition of new manufacturing capacity here, in Japan and
in Taiwan.
Price hikes
On spot markets, prices for 64-Mbit DRAMs rose from a high of about $6.52 in late
July to $7.26 in early August. Generic SDRAM prices have seen a similar increase,
reaching a high of $5.79 last month. The price rise was attributed largely to speculation
on the impact of the recent power outage that affected Taiwan's major fabs.
Embattled Korean memory makers are taking advantage of the rise in memory prices on
the spot market by hiking prices. Samsung, Hyundai Electronics and Hyundai
Semiconductor are actively reviewing markups in the prices for customers on long-term
contracts.
Meanwhile, Asian LCD makers are beginning to add manufacturing capacity. Industry
sources said Taiwanese manufacturers opened new production facilities recently as
Korean and Japanese display makers increased production capacity by 30 percent.
With the supply of thin-film-transistor (TFT) LCDs said to be lagging demand by 10
percent, prices are up sharply, with 12.1-inch LCDs selling for about $350,
13.3-inchers for $500 and 14.1-inch displays for $540.
Taiwan's CPT Inc. began TFT LCD production in the second quarter, and other
manufacturers there are expected to begin production early next year. Still, analysts said
the added production capacity will do little to ease display shortages this year.
No relief is in sight until mid-2000 when new production facilities come online,
increasing supplies by 30 percent.
Iris
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