To: TREND1 who wrote (49254 ) 10/14/1999 1:17:00 AM From: DJBEINO Respond to of 53903
Memory Chip Prices in China Triple After Taiwan Quake SHANGHAI, Oct 13 (AFP) - Taiwan's devastating earthquake last month has caused the price of of memory chips used in personal computers to more than triple in mainland China, PC industry insiders said on Wednesday. They said the impact on China was more exaggerated and would last longer than elsewhere, because Taiwan component makers would only restore supply lines to the country after satisfying order backlogs in higher-priority markets such as the United States and Europe. The average market price for a 64-megabyte SDRAM chip had shot up from just 370 yuan (44.6 dollars) two months ago to around 1,300 yuan (156.6 dollars), said information systems engineer Wang Zhigang, confirming a report in the official Laodong Daily. Wang, who works for Shanghai Macrowyse Info-Tech Development Co. Ltd., said the price of computer motherboards had also risen by around 10 percent. "If you want to buy a computer, don't buy it now -- wait six months," he said, adding that quake-related inflation in these components had boosted retail prices of made-to-order PCs by nearly eight percent. The temblor on September 21 caused a global supply crunch, as Taiwan produces a commanding proportion of certain computer components. While it did not destroy factories outright, long electricity black-outs caused suspensions of work, as did contamination of the sensitive dust-free environments required for semiconductor production. Prices on the mainland will continue to rise, as the supply has "almost stopped" and is not expected to return to normal until next April, Wang and other analysts said. One PC company in southern Shenzhen complained that it could only get its hands on 50 motherboards per month, compared with more than 1,000 normally. The dramatic shortages have prompted irregular market practices here, including speculative hoarding and the substitution of used or lower-grade hardware by unscrupulous PC businesspeople, the Laodong Daily said. Taiwan produces 80 percent of the world's PC motherboards and 75 percent of its add-on cards, it said. Demand for such vital components is high in China, as none are made domestically, and consumers are expected to snap up some six million units this year. Chinese PC makers control around a 60 percent share of the market, which grew by 13.9 percent last year.