Chip exports to top $20 billion
Korea's semiconductor exports are expected to exceed $20 billion this year for
the first time since 1995 mainly due to the strong price of 64M DRAM (dynamic
random access memory) chips.
The Ministry of Commerce, Industry and Energy said yesterday that it has
upgraded this year's goal of chip exports to $20 billion won from $18.5 billion, a
figure which the ministry previously set while expecting the price of 64M DRAM
chip to average at $7.5.
The price of the chip, the current mainstay in the world market, surged to
$14.02-15.17 on the U.S. spot market Saturday, continuing its upward streak
which started Aug. 30 when it jumped to $9 from $8.
The average price of the chip decreased from $10.85 in January to $7.96 in
July, but turned upward posting $8.56l in August, far higher than expected.
The readjustment of exports goal is based on the ministry's forecast that the
price hike will continue for some time.
Supply of the chip is falling short of demand that is showing no sign of
decreasing amid the PC market boom fueled by computer makers' price-cut
strategy and consumers' willingness to buy new PCs in fear about Y2K. In
contrast, supply has yet to reach the level of late July when a power blackout
damaged Taiwan's chip production.
Also behind the raise of the export goal is the belief that the generation shift in
semiconductor will be postponed, making 64M DRAM to stay longer in the
market.
It was widely predicted that 64M DRAM chip will be replaced by the next
generation chip, 128M DRAM, as the price of the latter falls below a combined
price of two 64M DRAM chips.
But current trend defies such forecast. The price of 128M DRAM, which kept
falling from around $40 early this year to $17 in late August, made an upturn in
September. It was being traded between $23 and $25 on the U.S. spot market
Thursday.
This is attributable to decreasing supply as chip makers are delaying the
expansion of 128M DRAM production to benefit from current strength in the price
of 64M DRAM.
Analysts predict that the generation shift in semiconductor will take place at the
end of the year or early next year.
Korea's semiconductor export reached $22.1 in 1995 when the chip market
boomed.
Updated: 09/13/1999
by Hwang Jang-jin Staff reporter
Korea Herald |
