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ESIO 29.990.0%Feb 1 4:00 PM EST
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To: vinh pham who wrote (380)5/13/1998 12:19:00 PM
From: Mark Oliver   of 723
 
South Koreans to manufacture next-generation
chips in 1999
May 12, 1998 Source: Nikkei America

Demand Expected To Begin Rising For 256M DRAMs

Major South Korean semiconductor makers will start turning
out next-generation memories in 1999 in anticipation of growing
demand.

LG Semicon Co. has resumed construction of a plant in Wales
in the U.K., with plans to begin production in mid-1999.
Samsung Electronics Co. also plans to start production in early
1999 by remodeling an existing plant in South Korea. Hyundai
Electronics Industries Co. aims to begin production in 1999 by
completing a plant in Scotland.

Although the South Korean economy has not recovered from its
recent crisis, domestic manufacturers will concentrate
investment on 256-megabit dynamic random-access memories
(DRAMs) and expand exports on the strength of the weak won.

Major Japanese chipmakers made plans in the summer of 1997
to build such chips in 1999. However, the economic downturn
prompted most to put off plans for large-volume production of
next-generation memories until at least 2000. But the moves of
their South Korean rivals are expected to spur the Japanese
companies into taking similar steps.

Demand for 256M DRAMs is expected to begin increasing
rapidly in 2001. The overall DRAM market for that year is
projected to stand at about 58 billion dollars. LG Semicon will
revamp the production lines at its Welsh plant, which was
originally to turn out 64M DRAM chips, to make it a plant for
256M chips. A plant which can produce next-generation
DRAMs costs around 150 billion yen (1.1 billion dollars) to
build, about the same amount of money expected to go into the
Welsh plant.

Samsung has installed a facility for 0.18 micrometer
processing at an existing 64M DRAM plant in South Korea,
and has begun manufacturing 256M chips on a trial basis. The
company has started shipping samples to personal-computer
makers and aims to begin mass production as early as
possible in 1999.
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