01/02 16:15
Micron Rises as Rival Hynix Boosts Memory-Chip Prices (Update7)
By Cesca Antonelli
quote.bloomberg.com
Boise, Idaho, Jan. 2 (Bloomberg) -- Micron Technology Inc. shares rose 7.2 percent after rival Hynix Semiconductor Inc. increased its computer-memory chip prices for the third time in less than a month.
Micron, which is the second-biggest maker of personal- computer memory chips and is in talks to acquire some Hynix assets, gained $2.24 to $33.24. The stock reached as high as $33.25 and has advanced 87 percent since Oct. 1.
The price increases by Hynix, the third-biggest maker, suggest the market may have bottomed. The price of a 128-megabit memory chip rose 61 percent since the beginning of December as computer makers used inventory and placed orders.
``Most people feel the worst is behind us and that we can look forward to better demand in 2002,'' said Scott Pape, a money manager at Chicago-based CastleArk Management, which owns about 250,000 Micron shares.
Hynix raised long-term contract prices for memory chips known as DRAM by 30 percent, spokeswoman Kang In Young said. The South Korean company increased prices twice in December, by 20 percent each time.
Samsung Electronics Co., based in South Korea and the market leader, also is negotiating price increases with customers, said Kevin Jeong, a spokesman. Samsung expects to announce DRAM increases this weekend.
``If other companies are raising prices, we would follow suit,'' Micron spokesman Sean Mahoney said. |
