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Technology Stocks : A Discussion re. Memory: MU CY TXN ALSC IDTI ISSI etc.
TXN 161.46+0.6%3:59 PM EDT

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To: Just4fun2 who wrote (106)12/14/1996 12:52:00 AM
From: Nandor   of 138
 
So far the news is not encouraging:

NEW YORK -(Dow Jones)- Reports in Japan and elswhere Friday said Japanese semiconductor makers have suspended plans to set up new chip plants because of falling prices.

The chip market appeared to be recovering just before the holiday-selling season but some industry players say prices are falling again.

Hitachi Ltd. reportedly has halted work on a planned factory in Malaysia that would produce 16-megabit and 64-megabit dynamic random access memory, or DRAM, chips, The plant was to be built under a venture with South Korean conglomerate LG Group. Construction was to start by the end of this year.

The Japanese business daily Nihon Keizai Shimbun reported that other major Japanese semiconductor makers such as Toshiba Corp. and NEC Corp. are also postponing plans to build factories.

Toshiba has reportedly delayed making a final decision whether to build a new plant with Motorola Inc. That plant would produce 64-megabit DRAM chips starting in 1998. NEC has reportedly halted a plan to build a $1.3 billion plant in California for making 64-megabit and 256-megabit DRAM chips.

The chip industry has been nervous because DRAM prices have fluctuated wildly in the last two months, and have plummeted 80% in the past year.

Copyright (c) 1996 Dow Jones & Company, Inc.

Transmitted: 12/13/96 9:29 PM
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