FWIW, MU responds to Taiwanese charges:
biz.yahoo.com
They do PR well.
A+
...''There is no basis for this antidumping case,'' said Steve Appleton, Micron Chairman, CEO and President. ''Micron is acknowledged to be the lowest cost DRAM producer in the world. Yet, Micron is charged with a much higher margin than any other U.S. producer...
Where's the logical nexis between "low cost producer" and "much higher margin"? If the Taiwanese felt MU was the most egregious violator, the punishment that is metted out should be heavier.
...In the last several years, despite oversupply in the DRAM industry, Taiwanese manufacturers have continued to increase DRAM capacity. During the period of investigation, six new DRAM companies started operations in Taiwan, and nine new DRAM fabrication facilities were brought online. DRAM capacity in Taiwan jumped from 5,000 wafers per month in 1992 to 180,000 wafers per month in 1999, an increase of 3,500 percent. In contrast, Micron put its new $2.5 billion facility in Lehi, Utah, on hold...
Good apples to oranges comparison.
A. "DRAM capacity in Taiwan jumped from 5,000 wafers per month in 1992 to 180,000 wafers per month in 1999, an increase of 3,500 percent."
B. "In contrast, Micron put its new $2.5 billion facility in Lehi, Utah, on hold."
DRAM capacity at MU jumped from ______ wafers per month in 1992 to _________ wafers per month in 1999, an increase of ______ percent. They chose not to make that comparison. I wonder why.
...The Taiwanese DRAM industry has grown exponentially over the last several years and there are now more DRAM producing companies in Taiwan than there are in the rest of the world combined...
Good appeal to a meaningless number. MU itself has a greater market share than the Taiwanese "DRAM producing companies".
...No impartial proceeding would have found Micron to be dumping product in a market that has been so aggressive in adding capacity,'' said Appleton...
Why? Where's the logical nexis between Micron "dumping" and the aggressivness of the market in adding capacity. There is none.
Micron officials have not received official notification of these dumping allegations and do not know the basis of this decision. Yet, Taiwanese officials reportedly have freely disseminated information to the Taiwan press in an obvious violation of WTO standards.
Did anyone ever see a copy of the Commerce Department's ruling?
Appleton may have some good points and legitimate beefs.
IMHO, the above are the more frivolous ones.
I hate PR <g>
Good trading,
Tom |
