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To: Zeev Hed who wrote (48417)	9/19/1999 2:51:00 PM
From: DJBEINO	Respond to of 53903

128M DRAM price surges to $30 Following the steep price hike of 64M DRAM (dynamic random access memory) chips, the price of the next-generation semiconductor, 128M DRAM, also surged on the U.S. spot market last week. According to industry sources, the price of the chip has risen more than $10 since Sept. 8 when it was quoted at $19.46. Last Friday, the 16M x 8 PC-100 chip was being traded at a ceiling of $29.68, up $1.75 from $27.93 of the previous day, while the price of the 32M x 4 PC-100 chip increased $5.30 to $30.73. The price of 64M DRAM chips has been stable at around $15 since Sept. 11. The 128M DRAM chip is currently used in mid-sized and server computers, but not widely used in personal computers. The price of 128M DRAM chips declined from around $40 in February to $17 in late August. At that time analysts predicted that 128M DRAM would replace 64M DRAM soon in what is called the "bit cross" phenomenon, referring to the price of the 128M DRAM falling below a combined price of two 64M DRAMs. Defying this forecast, the price of 128M DRAM took an upturn in September, buoyed by the rise in price of 64M DRAM. With the strong price of the chip, analysts forecast the generation shift in semiconductor will be postponed to the end of the year or early next year. Meanwhile domestic chipmakers, Samsung Electronics and Hyundai Electronics Industries, are showing differing views on the market trend. Samsung officials say that the chip market is overheated, not backed up by actual trade. "While the quotation stays high, actual trade is not increasing. The current 64M DRAM market will cool down before long," a Samsung official said. Samsung, which has already recovered their investment in 64M DRAM, appears to hope that the chip-market mainstay will switch rapidly to 128 M DRAM, for which the company has the market initiative. Samsung expects to earn 4 trillion won in net profits this year due to strong exports in chips, telecom equipment and TFT-LCD (thin film transistor-liquid crystal display). Analysts see this will help the company take advantage over its competitors in the next-generation chip market. In contrast, Hyundai projects that the current chip market boom will continue till the end of the year with supply continuing to fall short of demand. Hyundai's electronics unit was in the red due to the fall in the chip price in the first quarter of this year. The company hopes that the 64M DRAM stays longer in the market, helping the company recover the deficit and see a modest surplus this year. But the firm is also confident about its competitiveness in the 128M DRAM market, as the planned merger with Hyundai MicroElectronic, scheduled for next month, will expand its chip production capacity to exceed that of Samsung's. Updated: 09/20/1999