Samsung, Hyundai to Reduce Production of 64Mb DRAMs
June 1, 1998 (SEOUL) -- Samsung Electronics Co., Ltd., Hyundai Electronics Industries Co., Ltd. and other Korean semiconductor makers plan to reduce production of 64Mb DRAMs to prevent memory chip prices from falling further.
An oversupply in the memory chip market is responsible for huge profit losses among domestic semiconductor manufacturers.
The companies requested the government's help to ease their financial burdens, including high interest rates in the International Monetary Fund system.
The companies' representatives met on Thursday with government officials and agreed to limit production and look for ways to achieve price stability.
"The choice to limit production must be made of their own free will," said Korea Semiconductor Industry Association vice president Kim Chi-rak.
LG Semicon President Koo Bon-joon, however, showed little faith in the proposal and said, "LG will decide its course of action after observing the policies of other companies."
The price of 64Mb DRAMs has fallen to US$8-US$10 each, with Samsung and Hyundai supplying more than 30 percent of the global 64Mb DRAM market.
Units prices are expected to increase once the proposal takes effect.
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