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Technology Stocks : Micron Only Forum

MU 333.34

-1.4%

Jan 14 3:59 PM EST

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To: bucky89 who wrote (10464)	3/11/1997 3:03:00 PM
From: Knighty Tin	of 53903

Josh, Considering that they have two year depreciation in Korea, you are probably right that Samsung is probably fairly fully depreciated on 16 Mbit fabs. However, they have never been able to hold substantial inventory for long. The cost of making a chip is simply too high to hold them for an extended period of time. This time may be different, but I doubt it. The current moves brings back memories of last year. Folks were saying to buy MU because they would be alone as the most efficient producer of 4 Mbit chips while everyone else had 16 Mbit capacity. -g- Also, the same argument about 4 Mbit having to go up to support 16 Mbit prices was used then. But, the fact is, you bring down 64 Mbit costs by producing them in ever greater quantities, not by artificially holding up 16 Mbit prices. And the extra costs to pc boxmakers at what is a tough time for them will not help sell more chips of either 16 or 64 persuasion. MB

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