The story is different for flash-memory products
Japan's chip makers remain cautiously optimistic about New Year
By Faith Hung and Jack Robertson
Electronic Buyers' News
(01/02/01 14:52 p.m. EST)
TOKYO -- Right after chip revenue and profits went soaring in the first half of 2000, the market suddenly went soft, leaving industry executives guessing where it would head next.
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The story is different for flash-memory products. All the major Japanese flash vendors said they are sold out for the rest of their fiscal years and are predicting continued strong growth in the year ahead. Fujitsu Ltd.'s flash production will rise 50%, to 18 million units (of 16-Mbit equivalent) per month, in the ongoing fiscal year and jump 150%, to 43 million units next year, according to Kazuhisa Nakamura, general manager of the company's flash-memory division.
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Also, Hitachi's semiconductor capital spending in the next fiscal year will "likely be a little lower" than the $1.9 billion in the current fiscal year, Shiraishi said. Toshiba Corp. hasn't set capital spending plans yet, but intends to increase its outsourcing of chip production to conserve investment, a spokesman said. About 7% of all chip output is now outsourced, and this level is expected to increase to 25% by 2002, he added.
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