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Technology Stocks : Micron Only Forum

MU 232.02

-2.3%

2:07 PM EST

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To: DavidG who wrote (27727)	2/3/1998 10:45:00 PM
From: DJBEINO	Read Replies (2) of 53903

Hyundai Elec To End 16M DRAM Production On Material Shortage TOKYO (Nikkei)-Hyundai Electronics Industries Co. will soon stop making 16-megabit DRAMs, say industry sources. Samsung Electronics Co., LG Semicon Co. and other major South Korean chipmakers are also reportedly planning substantial production cuts. The country's currency crisis is making it difficult for them to purchase silicon wafers and other semiconductor materials abroad, forcing them to curtail production, the sources add. This week Hyundai began notifying Japanese customers it intends to stop fabricating 16M DRAMs - the most common memory chip used in personal computers - and 256-kilobit static random access memories at the end of February. Producers of silicon wafers, lead frames and other chip materials are shifting their shipments to Taiwan and other countries not plagued by the kind of currency and credit crises South Korea is suffering, note Japanese wafer makers. The crisis has prompted South Korean makers to abandon 16M DRAMs and shift to higher-margin 64M memory chips to cope with the scarcity of materials, industry analysts add.

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