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Politics : Formerly About Applied Materials

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To: Tony Viola who wrote (35298)	5/22/2000 12:38:00 AM
From: Jeffrey D	Read Replies (1) of 70976

Samsung can't keep up with expanding demand. Jeff KOREA ECONOMIC WEEKLY: FLASH MEMORY MARKET FACES BOOM DAYS 87% match; The Korea Economic Daily ; 22-May-2000 12:00:00 am ; 262 words The nation's semiconductor makers are doing a flourishing business in flash memory chips these days. Major chipmakers such as Samsung Electronics Co. and Hyundai Electronics Industries are said to have flash memory orders piled up for months. Demand for flash memories skyrocketed along with explosive growth of digital devices including mobile phones and MP3 players. In some cases, however, the chip manufacturers have not caught up with surging demand. One source from Samsung Electronics said, "Despite our efforts to increase flash memory production capacity by turning part of our DRAM production lines to flash memories, we still can't meet the rising orders for NAND-type flash memory chips which are used mainly for MP3 players and digital cameras." He added that such a boom for the flash memory product is expected to continue through the second half of this year. Samsung Electronics recently raised its flash memory revenue estimate to $700 million from $400 million this year. If the demand keeps rising as it has recently, the company expects to reach the target easily. Hyundai Electronics, which currently concentrates on NOR-type flash memory chips used for mobile phone devices, is not too different from Samsung regarding its flash memory outlook. One source from Hyundai Electronics said that the company is expanding its flash memory production capacity but sharp increase in demand make it difficult to deliver the items on time. He added, "We expect to see a rapid expansion of sales from flash memories this year, perhaps more than $200 million from flash memories alone." Industry watchers forecast such a boom will continue on at least until next year. Such a forecast comes from steadily increasing production of mobile phones and rising demand for larger memory capacity for other digital devices. >>

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