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To: yousef hashmi who wrote (5787)	8/10/1999 9:24:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

DRAM market prospects bright The memory chip market will enjoy a boom for the next few years, leading to improved profitability for makers of semiconductors, according to a recent report by a U.S.-based research firm. IC Insights, a research firm which focuses on the integrated circuit industry, forecasts that the DRAM (dynamic random access memory) market for this year will grow 33 percent in terms of the price of total output over last year. The DRAM market has seen a big drop in the price of total output since 1995 when it reached $40.8 billion. The market size in 1998 was $14 billion. IC Insight forecast that the DRAM market would make a turnaround this year and continue to expand for the next few years, reaching $52.1 billion in 2003. Most semiconductor makers have reduced new investments due to a severe depression in the DRAM market in 1996-1998, retarding the supply increase for the next few years. The production of DRAM in 1997 increased 98 percent over the previous year, leading to an oversupply. However, this year's 64 mega DRAM is expected to stand at 23 billion, an 81 percent supply increase rate. The rate of supply increase is expected to slow down every year, with a 43 percent supply increase rate forecast for 2003. An industry analyst predicted that, barring a repeat of a competitive facilities expansion, the DRAM market will see a second boom such as the one in 1994-1995. The steep increase in the price of DRAMs is likely to lead to much improved profitability for semiconductor manufacturers. According to the industry sources, the price of 64 mega DRAM has continued to rise steadily since rising from rock bottom at the end of June. Following a major blackout in Taiwan July 29, Taiwanese DRAM output is expected to drop by 20 percent, driving the price of DRAM up higher. 8 mega X8 synchronous PC 100, which constitutes the largest share of 64 mega DRAMs, traded at $6.03-$6.52 July 29. It traded much higher last week, reaching $7.18 -$7.77. Based on the average price, the price has risen 20 percent in one week and it is expected to continue to climb. Semiconductor manufacturers are planning to negotiate a one to two dollar increase per 64 mega DRAM for long-term contract clients. This is because the start of the school year in September in the West is expected to boost the demand for PCs while DRAM inventories of major PC makers have been significantly reduced, allowing the price of DRAM to maintain its strength. Samsung Electronics, Hyundai Electronics Industries and Hyundai Semiconductor would be able to make profits even if the price of 64DRAMs drops to $4-$5 per unit, according to industry watchers. Customarily, the price for regular clients is $1-$2 more expensive per unit. Depending on the price negotiations with regular clients, semiconductor manufacturers may be able to make a $3-$4 profit on each unit supplied. Samsung Electronics sells 20 million 64 mega DRAMs a month, while HEI and Hyundai Semiconductor produce 15 billion-18 billion a month. Each company stands to gain 50 billion won a month in profits. Updated: 08/11/1999

To: yousef hashmi who wrote (5787)	8/12/1999 12:51:00 AM
From: DJBEINO	Read Replies (2) \| Respond to of 9582

Flash memory scarce as MP3 players ramp EE Times (08/11/99, 6:22 p.m. EDT) SEOUL, South Korea — Supplies of flash memory have become tight in South Korea, potentially endangering the rapid ramp of a host of new Internet audio players. In addition, Korean manufacturers are reporting a sharp upturn in DRAM prices and an ongoing shortage of LCDs. The flash shortage is being attributed in part to the fast rise in production of MP3 players here and to the increasing use of flash in other digital consumer devices, such as cameras and video recorders. Manufacturers also report a scarcity of other solid-state storage media, including the SmartMedia Card and Multimedia Memory Card. The shortage comes as major suppliers such as Samsung plan to reduce flash prices from about $1.50 per Mbyte to as low as $1/Mbyte in the third quarter, as part of a shift from 16- to 32-Mbit products. However, prices are not expected to rise as supplies for those parts tighten. Responding to the growing demand, Samsung has shifted some of its DRAM lines to flash work and nearly doubled its production capacity for flash. DRAM prices are again on the rise here and an LCD shortage is expected to continue well into next year despite the addition of new manufacturing capacity here, in Japan and in Taiwan. Price hikes On spot markets, prices for 64-Mbit DRAMs rose from a high of about $6.52 in late July to $7.26 in early August. Generic SDRAM prices have seen a similar increase, reaching a high of $5.79 last month. The price rise was attributed largely to speculation on the impact of the recent power outage that affected Taiwan's major fabs. Embattled Korean memory makers are taking advantage of the rise in memory prices on the spot market by hiking prices. Samsung, Hyundai Electronics and Hyundai Semiconductor are actively reviewing markups in the prices for customers on long-term contracts. Meanwhile, Asian LCD makers are beginning to add manufacturing capacity. Industry sources said Taiwanese manufacturers opened new production facilities recently as Korean and Japanese display makers increased production capacity by 30 percent. With the supply of thin-film-transistor (TFT) LCDs said to be lagging demand by 10 percent, prices are up sharply, with 12.1-inch LCDs selling for about $350, 13.3-inchers for $500 and 14.1-inch displays for $540. Taiwan's CPT Inc. began TFT LCD production in the second quarter, and other manufacturers there are expected to begin production early next year. Still, analysts said the added production capacity will do little to ease display shortages this year. No relief is in sight until mid-2000 when new production facilities come online, increasing supplies by 30 percent. eet.com