Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: pompsander who wrote (35097)	11/23/1999 7:40:00 PM
From: Don Green	Respond to of 93625

Korean firms to capture over 40% of DRAM market 11/24/1999 Hyundai Electronics Industries and Samsung Electronics, two leading Korean chipmakers, are expected to have more than a 20-percent share of the global DRAM (dynamic random access memory) market, this year. Industry sources said Hyundai and Samsung will post $4-$4.4 billion worth of DRAM sales, jacking up their market share to 22 percent, up from last year's 18.5 percent and 19.3 percent, respectively. The competition in global chip markets is expected to intensify as two Japanese chipmakers, NEC and Hitachi, are reportedly set to integrate their semiconductor operations. But industry sources said the impact of the merger will not threaten the leadership position of the Korean companies. NEC and Hitachi currently hold a combined 15 percent share in the global DRAM market. Sources said the two companies will not increase their investment in chip production. "The merger is mainly designed to catch up with their competitors in price competitiveness and production scale. The companies are expected to maintain current production volume," said an expert. The merger will consolidate the global DRAM market under the domination of the "Big Four" - Samsung, Hyundai, Micron Technology of the United States and the new NEC-Hitachi joint venture - which will share 70 percent of the market. The consolidation is expected to help prevent over-competition between chipmakers. Analysts said the Big Four will not raise their investment in DRAM production, as the demand for chips is not expected to grow further. The cost for building one production line for DRAM chips is estimated at more than $3 billion. Updated: 11/24/1999