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Politics : Formerly About Applied Materials
AMAT 249.89+3.1%3:59 PM EST
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To: Math Junkie who wrote (24608)9/24/1998 8:49:00 PM
From: Ramsey Su  Read Replies (1) of 70976
 
TOKYO (Nikkei)-Japan's five memory chip manufacturers will by next
spring reduce domestic production of 64-megabit dynamic
random-access memories by about 30% from levels initially planned,
which would leave their monthly output in Japan at a total of 35 million
DRAMs, sources at the companies said Thursday.

The firms have been losing money on their DRAM manufacturing
operations due to the collapse in chip prices that began early in 1996.
None of them currently plan to increase production in fiscal 1999 or
later.

Mitsubishi Electric Corp. (6503) will cut domestic 64M DRAM output
10% to 4.5 million units by next spring. The company has been
consigning production to Taiwanese firms and will give them more work
if demand rises next year.

NEC Corp. (6701) will slash output to 10 million chips from 15 million.

Toshiba Corp. (6502) will reduce production to 7 million chips from 10
million. Managing Director Koichi Suzuki said, "Profitability of the
DRAM business is on the decline and the company plans to cut
production in value terms toward the year 2000."

"Prices of 64M DRAMs may fall to $5-6 per unit next year, from $8-9
at present," said one executive at a major manufacturer. But prices of
chips produced in Japan probably won't drop much below $8 despite
serious cost-cutting efforts, industry analysts said.

(The Nihon Keizai Shimbun Friday morning edition)
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