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To: TREND1 who wrote (51295)	5/22/2000 8:50:00 AM
From: DJBEINO	Respond to of 53903

Worldwide-Chip Sales Likely to Peak in 2002, Dataquest Says 5/22/00 2:31:00 AM Source: Bloomberg News Tokyo, May 22 (Bloomberg) -- Worldwide sales of computer memory chips are forecast to peak in 2002 as oversupply leads to lower prices, according to an electronics industry research firm. Worldwide sales of dynamic random access memory chips are expected to peak at $75 billion in 2002, more than double the $36 billion in sales estimated for 2000, said Dataquest Inc., a subsidiary of the Gartner Group Inc. of the U.S. Sales of flash memory chips, used mainly in mobile phones, digital cameras and other digital appliances, are expected to peak at about $15 billion in 2002, compared with about $8 billion in 2000, Dataquest said. Chipmakers have invested heavily in chip-making equipment to meet brisk demand for personal computers, mobile phones and mobile computing devices. Analysts warn that while worldwide sales are expected to jump 20 percent this year, surging supply may soon overwhelm demand, depressing prices. ''We expect it will take 2 years to reach the oversupply phase'' from the time when chipmakers begin boosting spending on new chip plants and machinery, said Jim Handy, a semiconductor analyst at Dataquest. Despite the decline in revenue, Dataquest said shipments, as measured by the amount of computer memory, will continue to rise. DRAM shipments in megabytes, which have consistently shown 70 percent growth annually in the past 10 years, will continue to exceed that level, Handy said. Flash memory chip shipments in megabytes have been doubling annually and will continue to maintain that growth for the next few years, Handy said.