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Technology Stocks : AMD:News, Press Releases and Information Only!

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To: Investor A who wrote (2881)	12/12/1997 7:08:00 PM
From: Petz	Read Replies (1) of 6843

Fuchi, Taiwan DRAM price plunge: techweb.com The DRAM market continues to take a pounding, as product prices are falling below many suppliers' manufacturing costs in the Far East. Prices for a 16-megabit DRAM on the spot market in Taiwan have recently fallen by a staggering 25 percent, to $2.40 per unit this week from $3.20 two weeks ago, said analyst Don Floyd at ING Barings Taiwan Ltd., in Taipei, Taiwan. Prices for a 64-megabit DRAM in the local market have fallen by more than half this year, to as low as $15 as of last week, Floyd said. "It's sick," he said. "The price for a 4-megabit-by-4 DRAM is below the variable costs for Taiwan's DRAM makers. We're getting to the point that Taiwan companies might as well turn off their fabs and go home for the day." The way I figure it, if a 4M by 4 bit DRAM is going only for $2.40, the manufacturers are only getting $38.40 for the guts of a 32M SIMM or DIMM. By comparison, a $300 CPU seems outrageously expensive and unsellable. Petz

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