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Technology Stocks : Micron Only Forum
MU 234.19-2.2%3:59 PM EST
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To: phbolton who wrote (30741)3/18/1998 10:54:00 PM
From: DJBEINO  Read Replies (1) of 53903
 
NEC To Double 64M DRAM Production By Year-End
TOKYO (Nikkei)-NEC Corp. (6701) will double 64-megabit DRAM production to 10 million chips a month by the end of the year, boosting its total output of memory devices 60%, company officials said. Though chip prices remain low and producers at home and overseas are reluctant to increase output, NEC expects the market glut to end in or after autumn as shipments by South Korean makers slow.

NEC forecasts growing demand for 64M DRAMs from makers of high-speed telecommunications equipment.

At present, 64M chips sell at a low $12-15 each. But NEC believes it can increase production while maintaining profitability by specializing in high-speed chips and successfully cutting fabrication costs.

NEC enjoys fairly good profit from its semiconductor business, thanks to its strength in logic chips, another factor prompting the production increase.

South Korean chipmakers such as Samsung Electronics Co. are suffering deteriorating profits.

Micron Technology Inc., the world's top producer of 16M DRAMs, has yet to shift production to 64M chips.

Toshiba Corp. (6502) and Mitsubishi Electric Corp. (6503) will each be turning out 8 million 64M DRAMs monthly by the end of the year, and Fujitsu Ltd. (6702) 6 million.

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