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RMBS 101.61+2.8%Dec 5 9:30 AM EST
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To: richard surckla who wrote (29654)9/16/1999 1:00:00 AM
From: Don Green  Read Replies (3) of 93625
 
NEC To Become World's Biggest Producer Of 128M DRAM Chips

Thursday, September 16, 1999

TOKYO (Nikkei)--NEC Corp. (6701) plans to become the world's largest producer of 128-megabit DRAMs by raising output eightfold to 8 million a month. The production boost is part of efforts to win profits from the chipmaking division, company sources said Wednesday.

Output of 64M DRAMs, the firm's mainline memory chip, will be halved from the current 10 million a month by next summer. The switch to 128M DRAMs is expected to improve earnings at the money-losing division.

NEC has been fabricating DRAMs at its Hiroshima and Kumamoto Prefecture plants in Japan as well as its plant in Scotland. These facilities will begin switching to 128M DRAM production from next spring.

In moving to 128M DRAMs, NEC will give priority to producing the promising Direct Rambus memory chip, raising output to 4 million monthly by next summer and 6-7 million by the end of 2000.

NEC also plans shipping next-generation 256M Direct Rambus DRAMs by the end of this year, ahead of other firms. The company expects to begin fabricating this chip with a precision of 0.18 micron at the Hiroshima and other plants from next spring.

In fiscal 1998, NEC's chip division suffered losses of 30 billion yen amid weak demand for DRAMs.

(The Nihon Keizai Shimbun Thursday morning edition)
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