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Technology Stocks : Micron Only Forum
MU 236.50+2.7%Nov 28 12:59 PM EST
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To: Skeeter Bug who wrote (52752)7/5/2001 4:03:23 PM
From: DJBEINO  Read Replies (2) of 53903
 
Hitachi Shuts Chip-Making Plant;Fujitsu May Also - Nikkei

TOKYO (Nikkei)--Hitachi Ltd. (HIT or 6501) said Thursday that it has suspended
operations at its new cellular phone chip fabrication plant in Yamanashi
Prefecture, The Nihon Keizai Shimbun reported in its Friday morning edition.
In addition, Fujitsu Ltd. (J.FUT or 6702) has begun considering reducing flash
memory production, and may even close a plant of its own.
The moves by the two major semiconductor manufacturers were triggered by
plunging demand for such chips.
Hitachi had planned to use the Yamanashi fab for mass production of chips for
smart cards used in European cell phones. Demand for the cards was growing
along with the popularity of cell phones in that region. The facility came on
stream only in January, and Hitachi had planned to build up the fab work force
to 100 by year-end and spend about Y100 billion over the next five years to
make it a key plant.
To prevent a glut, Hitachi has also reduced combined output of chips for smart
cards at another Yamanashi plant and a German plant by 40% from the initial
plans made at the start of this fiscal year, to about 13 million a month.
Fujitsu, the world's third-largest flash memory maker, has two factories and
another coming on stream in September. It might shut down one of them and
reduce output at the new plant by 20% to 30% from its initial plans. It
produced 14 million flash memory chips in June, down more than 20% from March.
Toshiba Corp. (J.TOS or 6502) has decided on a 19-day suspension of operations
at a plant that manufactures commodity-grade chips.
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