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To: Chas who wrote (50642)	3/3/2000 9:33:00 AM
From: DJBEINO	Respond to of 53903

Hyundai, Samsung stand to make huge gains from chip price rise Hyundai Electronics Industries and Samsung Electronics stand to gain handsomely from the recent jump in DRAM chip prices given that the firms increased output before the rise. The Ministry of Commerce, Industry and Energy and business sources said yesterday that production of 64 mega DRAM chips by the two chipmakers hit 100 million units per month, double the output of a year ago. Output by the two makers came to 50 million units in January last year, but increased to 70 million in September and 100 million pieces in January, with Samsung putting all nine new assembly lines online. With chip prices taking off three to four months earlier than expected, the two companies are poised to earn substantial profits. Both Samsung and Hyundai protected themselves when chip prices fell by cutting costs, with the cost of producing a chip going down to $4 per unit. A ministry official predicted chip prices to rebound during the second quarter, but the rise came earlier than expected, at the end of last month, rising to $6 for 64 mega DRAM chips. The two chipmakers have supplied their chips on long-term contracts at prices ranging from $8-$9 before falling to $6.3-$7.8 recently. The prices are expected to recover to the $8 level soon. Updated: 03/04/2000