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 : Alliance Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: DJBEINO who wrote (7405)	5/2/2000 9:27:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

Taiwan Makers Expect Rosy Prospects for DRAM Industry May 2, 2000 (TAIPEI) -- Leading local manufacturers of dynamic random-access memory stand to make handsome fortunes in the second half of this year, when the current DRAM shortage will become even more acute. Local DRAM heavyweights Winbond Electronics Corp., Powerchip Semiconductor Corp. and Vanguard International Semiconductor Co., Ltd. (VIS) are striving to upgrade to 0.18-micron manufacturing technologies for higher cost efficiency. To do so they have transferred production resources from regular production of DRAMs, thereby reducing the volume of DRAMs they can produce. Just a few days ago, the spot price of 64Mb DRAMs soared to US$6.87 on the U.S. IC Exchange (AICE), much higher than the figure of US$5 to US$5.5 local storage plants had expected. A senior Winbond executive indicated yesterday that the supply of 64Mb DRAMs would probably be 20 percent short of demand this year, and fail to meet demand at all in 2001. There is general agreement that prices will rise, but not on how far. In Winbond's view, the average U.S. selling price of DRAMs will reach US$7.2 by the end of the year. By contrast, hopeful officials at U.S.-based Micron Semiconductor Products Inc. have suggested that the price of 64Mb DRAMs could top US$20, almost three times as high. Contemplating the prospects of a severe DRAM shortage coupled with lower production costs as their 0.18-micron technologies come on stream, storage makers are understandably optimistic about their fortunes in the next quarter. Winbond has now launched pilot production of 128Mb DRAMs using the cutting edge 0.175-micron process, and reckons that 70 percent of this production already meets international standards. The company plans to turn all of its current production lines over to 0.175-micron manufacturing this October, and to concentrate on making 128Mb and 256Mb DRAMs. Currently Winbond uses 0.2-micron technology to manufacture 64Mb DRAMs at a unit cost of US$5. If it can switch to a 0.18-micron or 0.175-micron process, it can get the cost down to US$4.5. nikkeibp.asiabiztech.com