Taiwan quake could boost Korean memory, LCD makers
By Yoonhee Park
EE Times
(09/22/99, 2:36 p.m. EDT)
SEOUL, South Korea — South Korean semiconductor and display manufacturers expect to take up any slack in supplies resulting from the devastating earthquake that hit Taiwan on Tuesday.
Observers here said the earthquake and subsequent power outages that hit Taiwan may sharply reduce production, which could boost international DRAM prices. If so, Korean chip makers may raise prices as they expand exports.
If it takes at least several weeks for Taiwan fabs to come back on line, as many expect, the price of 64-Mbit DRAMs could hover between $14 and $15 until the end of the year, analysts here said.
The quake is expected to aggravate the current lack of DRAMs, forcing OEMs that rely on Taiwanese fabs to turn instead to Korean and Japanese chip makers, industry sources said.
South Korea's three top semiconductor manufacturers, Samsung Electronics, Hyundai Electronics and Hyundai Semicon, could see increasing memory sales as Taiwanese manufacturers struggle in the quake's aftermath. "An exceptionally brisk semiconductor market is expected if the impact of the quake in Taiwan overlaps with the current prosperous market," one industry watcher said.
Korea's LCD industry also stands to gain from Taiwan's misery. Leading Taiwanese LCD manufacturers are also expected to struggle as a result of supply problems, opening the door to Samsung, Hyundai and LG Electronics in the highly competitive display market.
"The Korean LCD industry [gains] considerable profit when Taiwanese manufacturers are damaged even a little," said Byungseo Chun, a division head with Daewoo Securities. He also predicted international LCD prices would rise as a result of the earthquake in Taiwan.
More strong aftershocks were reported in Taiwan on Wednesday (Sept. 22), although no new damage reports were immediately available. The death toll has reportedly topped 2,000.
Exclusive to EE Times by Chom Dan Inc. (Seoul, South Korea).
eetimes.com
|
