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Technology Stocks : Alliance Semiconductor
ALSC 0.8100.0%Jul 10 5:00 PM EST
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To: DJBEINO who wrote (9398)7/16/2001 1:48:45 PM
From: DJBEINO   of 9582
 
Fujitsu, NEC To Cut Chip Production In Summer -Nikkei

TOKYO (Nikkei)--In an effort to shrink inventories, Fujitsu Ltd. (J.FUT or
6702) and NEC Corp. (NIPNY or 6701) are both planning to reduce their
semiconductor output this summer, The Nihon Keizai Shimbun reported in its
Tuesday morning edition.
Fujitsu will slash output of flash memory chips at its joint venture with
U.S.-based Advanced Micro Devices Inc. (AMD) in Fukushima Prefecture.
Fabrication of the chips, which are used in cellular phones, will be suspended
for a month at one of three facilities starting in mid-August. Production at
the other two facilities will be suspended for two days. Workers at the plant
which is to be closed for one month will be temporarily reassigned to the other
two facilities.
Fujitsu will also suspend operations at three plants that make microcontroller
and system chips for nine days from Aug. 11.
NEC, meanwhile, is considering a plan to suspend operations for one or two
weeks at some of its fabrication plants for microcontrollers and memory chips
used in computer peripherals.
To maintain yields, chipmakers usually operate their plants year-round. In
1999 and 2000, for example, chipmakers operated their facilities without summer
holidays.
But the semiconductor market is in an extended slump, and Toshiba Corp. (J.TOS
or 6502) already plans to suspend operations at its plants for up to 19 days.
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