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Technology Stocks : Micron Only Forum

MU 294.36

+3.4%

Dec 29 3:59 PM EST

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To: TREND1 who wrote (34363)	6/4/1998 10:44:00 AM
From: DJBEINO	Read Replies (4) of 53903

3 Semiconductor Makers' Production Decrease to Influence World Market 06/04,19:36 With Hyundai Electronics taking steps to reduce production during a one-week cease of operation, Samsung Electronics and LG Semiconductors will be joining in. The three semiconductor manufactures' reduction of production amount is forecast to temporarily help relieve the excessive supply phenomena. According to the industries June 4, with the lead of the Hyundai Electronics, Samsung Electronics and LG Semiconductors are also taking steps to reduce their production amounts. It is forecast that the three manufacturers' one-week cessation of their production lines will bear the effects of some 12.2 percent decrease in supply in the world memory semiconductor market this month. The excessive supply rate in the world memory semiconductor market has maintained a 10 percent level. The industries expect the three manufacturers steps will greatly influence the market conditions, to the degree of temporarily causing supply shortage in June. The industries estimated that the three domestic semiconductors have been producing 23 million units of 64M D-RAMs and 57 million units of 16M D-RAMs monthly. When totaling the amount the standard of the 16M D-RAM, the monthly production amount reaches 149 million units. The reduction of the three manufacturers will momentarily cause a 12.2 percent reduction in entire world market production. The forecast is such movements will cause the price of the 64M D-RAM and the 16M D-RAM to greatly increase, which is currently at the 10-12 dollar and the 2 dollar 30 cent level. It is the industries' estimation that the price will hike up to two times of current price, in case such inclinations were to spread to the Japanese manufacturers.

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