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To: D.B. Cooper who wrote (31859)10/9/1999 10:51:00 AM
From: Don Green  Respond to of 93625
 
Chipmakers Raise 64M DRAM Prices Sharply

Saturday, October 9, 1999

TOKYO (Nikkei)--Major domestic semiconductor makers, including NEC Corp. (6701) and Mitsubishi Electric Corp. (6503), have agreed with major PC makers at home and abroad to sell 64M DRAM chips for 780-880 yen per unit for September delivery, up about 14% from the previous month, The Nihon Keizai Shimbun learned Friday.

PC makers and others are stepping up efforts to procure DRAM chips ahead of the Christmas and year-end sales season. Supply of DRAM chips is also running low due to a massive earthquake that hit Taiwan on Sept. 21.

Several PC makers have begun negotiations to set DRAM prices for October delivery one month earlier than usual. Some of them will even pay 1,050 yen per unit, the first time in six months that domestic large-lot DRAM prices have gone above 1,000 yen, industry sources said.

International Business Machines Corp., Compaq Computer Corp. and other large-lot overseas users agreed to pay 10.1-10.3 dollars per unit for delivery of chips in the first half of October, up some 50% from a month earlier.

The spot price (for small-lot orders), which is sensitive to shifts in supply and demand, rose sharply after the Taiwan earthquake, briefly reaching 20 dollars per unit.

The sharp rise in DRAM prices may boost earnings at the semiconductor divisions of major Japanese electrical machinery makers.

(The Nihon Keizai Shimbun Saturday morning edition)