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To: John Graybill who wrote (49253)	10/14/1999 1:05:00 AM
From: DJBEINO	Respond to of 53903

Taiwan DRAM Stocks Mixed After U.S. Anti Chip-Dumping Ruling Taipei, Oct. 14 (Bloomberg) -- Mosel Vitelic Inc. and other Taiwanese computer memory chip stocks in Taiwan were mixed as investors decided solid growth prospects outweigh a U.S. Commerce Department ruling which more than doubled anti-dumping tariffs on some chips. Mosel rose as much as 3.3 percent to NT$37.50 ($1.20). Winbond Electronics Corp. fell as much as 1.6 percent to NT$61. Powerchip Semiconductor Corp. jumped as much as 6.3 percent to NT$52.50. All were among the 10 most actively traded issues by market value and volume. The Commerce Department said yesterday it raised duties on dynamic random-access memory chips -- used as the main memory in personal computers -- from the 12 penalized companies to as much as 69 percent for some devices. In a previous ruling in May, it had raised tariffs to as high as 31 percent. Investors though decided a three-month rebound in DRAM prices is likely to continue and that higher tariffs wouldn't hurt the companies. ''The DRAM industry is expanding very fast and healthily,'' said Daphne Lu, manager of First Global Investment Trust Co.'s NT$4.6 billion Hitech Fund. ''DRAM demand will exceed supply in the second half of next year.'' Lu said about one-third of her portfolio is in DRAM stocks, and that she doesn't plan to reduce that percentage. DRAM makers worldwide have enjoyed a rebound in chip prices in the past three months as companies cut production of some devices to reduce oversupply and demand for memory in PCs rises. Spot prices, or prices for immediate delivery for the most commonly used 64-Megabit DRAMs rose to $15.53 yesterday from $4.55 on July 1, according to the American Integrated Circuit Exchange. Contract prices rose to $9 - $10 this month, compared with $6 - $7 in September, analysts said. ''Even though the prices are expected to fall as companies upgrade their technology to lower costs, they're still going to make a chunk of money,'' Lu said. Taiwan's production costs average about $5.50, analysts said. Etron Technology Inc., which was levied the heaviest duties, surged by as much as the daily 7 percent limit to NT$57. Others affected by the ruling are Vanguard International Semiconductor Corp., Nan Ya Technology Corp., TSMC-Acer Semiconductor Inc., Taiwan Semiconductor Manufacturing Co., United Microelectronics Corp., Macronix International Corp., and two unlisted companies, according to local reports. Last year, Taiwan exported US$700 million worth of DRAMs to the U.S., making it the third-largest source of foreign memory chips after South Korea and Japan, the Commerce Department said. Yesterday's ruling came after Micron Technology Inc., the largest U.S. memory chipmaker, accused Taiwanese rivals of selling their chips below production cost.