To: jackmore who wrote (29890 ) 9/19/1999 11:39:00 AM From: Estephen Respond to of 93625
from wsj September 15, 1999 Japan NEC To Quadruple 128-Megabit DRAM Production TOKYO -- NEC Corp. (NIPNY or 6701) said Thursday it will ramp up production of 128-megabit dynamic random access memory chips to 8 million units per month by the end of next summer from around 2 million units per month currently. During the same period, NEC will halve production of 64-megabit DRAMs to around 4 million units per month by the end of next summer from around 8 million units currently. Within the 128-megabit DRAM production, NEC plans to produce 4 million units of Direct Rambus chips per month by the end of next summer and to increase production of those chips to 6 or 7 million units per month by the end of next year, an NEC spokesman said. By the end of this year, NEC plans to start shipping 256-megabit Direct Rambus chips on a mass basis, the spokesman said. "The move to 128-bit chips pushes us ahead of the game in this area," the spokesman said. NEC will produce the 128-megabit chips mainly at plants in Hiroshima, Japan and in Scotland. There will also be some production at a plant in Kumamoto, Japan. NEC expects to post a group pretax profit on its semiconductor business for this fiscal year through March of Y35 billion. Last fiscal year, it had a loss of Y51.9 billion in this area. The company declined to comment on a Nihon Keizai Shimbun story Wednesday that it will post a group net loss of Y50 billion for the six months ending Sept. 30. NEC may make an announcement at the end of the month on restructuring activities and other issues, the NEC spokesman said. -By James Paradise, 813-5255-2947, jparadise@ap.org