To: DJBEINO who wrote (48006 ) 9/6/1999 9:16:00 PM From: Chas Respond to of 53903
DRAM prices soar dramatically The price of 64M DRAM (dynamic random access memory) chips have soared to $10 on the spot market. The chips, traded at $9 a piece Aug. 31, jumped to $10 in just three days, and it remains to be seen just how long this trend would continue. According to the industry 8M x 8 PC-100, the most widely retailed chip, traded in the U.S. spot market Thursday at $9.50-$10.27. It took exactly one week for the spot price of these chips to rise from $8 to $9 and only three days to jump to $10. Industry watchers predict that the price will continue to climb to $12-$13 per piece. The country's three largest chipmakers Samsung Electronics, Hyundai Electronics Industries, and Hyundai MicroElectronics have increased the price of their chips accordingly. In the past couple of months, the three companies have upwardly adjusted the price on four occasions. They have also hiked prices on a weekly basis, rather than the customary monthly basis, for the chips they supply to large U.S. PC makers. A Hyundai Electronics official said that his company has had to increase the price on their chips at shorter intervals to keep up with the pace of the price increases in the international market. However, a number of large and long-term customers such as IBM, Hewlett-Packard and Compaq, have been receiving special consideration, getting price adjustments on 10 to 14 day-intervals. Other customers have been getting new increased price on a weekly basis, the official explained. The chipmakers will continue to raise prices until the international market price levels off, despite complaints by some customers, said a Samsung Electronics official. Industry analysts predict that the price of 64M DRAM chips will stabilize at about $12 to $13 this month as further hikes are feared to drive customers toward 128M DRAM chips. Updated: 09/04/1999 by Kim Hoo-ran Staff reporter KoreaHerald News