To: John Graybill who wrote (48544 ) 9/22/1999 9:46:00 AM From: DJBEINO Respond to of 53903
Chip Prices Skyrocket to $17.23 09/22(¼ö) 16:39 By Chae Hee-mook Staff Reporter As expected, Tuesday's Taiwanese earthquake, which paralyzed production lines at Hsinchu Industrial Park in northern Taiwan where seven major chip plants of the island are located, pushed up semiconductor prices by high margins in the world market. Industry sources said yesterday that the price of the mainstay 64-megabit dynamic random access memory (DRAM) chip shot up by $1.65 from $14.41-15.58 Monday, to $15.92-17.23 Tuesday on the spot market of the United States as a result of the Taiwanese temblor that took place shortly after midnight. DRAM chip prices, which have been hovering at the $15 level for the past 10 days, easily crossed the $17 mark Tuesday due to the earthquake, a record high in nearly two years, sources said. Despite the favorable environment, Samsung Electronics share prices plunged 4,500 won to 235,500 won as of 15:10 Wednesday, one day after the jump of 19,000 won Tuesday. But Hyundai Electronics Industries marked a gain of 700 won to 40,500 won, following a climb of 4,600 won Tuesday. Hyundai Semicon, which has been renamed from LG Semicon after a big deal, also climbed 500 won to 28,500 won as of 15:10, following a gain of 3,200 won Tuesday. In the 64-megabit DRAM category, prices of '16X4 synchronous' chip that Taiwanese makers mainly produce have nearly doubled the $7.72-8.35 price on Tuesday to $13.38-14.47 in one day on the spot market, sources said. The soaring prices are in sharp contrast to the 128-megabit chip whose price remained unchanaged as the Taiwanese makers have no production lines for the chip. In the outgoing category of 16-megabit DRAMs, the chip for '4-megabit X4 PC-100' also doubled to $3.19-3.34 a unit Tuesday, from its price of $1.52-1.64 for the past several months. The '4-megabit X synchronous' chip also rose by more than 100 percent to $3.14-3.39 from $1.44-1.56. A Samsung Electronics official said, ''It'll be inevitable for chip prices to continue its rising spree for the time being due to the probable halt of Taiwanese semiconductor plants coupled with the global shortage of supply.'' Taiwan makes up 11-12 percent of the world's DRAM market and accounts for one third of the world's subcontract production of non-memory chips, he said. He said, ''The skyrocketing prices Tuesday were mainly seen in the chips that the Taiwanese make. The rising trend is expected to spread to all categories of DRAM chips.''