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To: FJB who wrote (418)	2/20/1998 7:12:00 PM
From: Mr. Aloha	of 582

TOKYO -- Toshiba Corp. has become the first chip makers... to officially announce it would end its 16-Mbit DRAM production in 1999, to concentrate solely on 64-Mbit and higher density memory chips. A spokesman said Toshiba has notified its key customers of the intended "end of production" in the fiscal year beginning April 1, 1999, and asked OEMs to estimate their purchase needs for 16-Meg DRAMs for the rest of fiscal 1998. Sources believed Toshiba's exit from 16-Mbit even a year from now reflects the unending price erosion in that generation continuing into 1999. Global production of 16-Mbit DRAMs is actually expected to increase in units this year with some analysts predicting a 10% growth to 2.24 billion units, far exceeding the 436 million unit supply of 64-Mbit chips.

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