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

To: Jdaasoc who wrote (42871)	5/23/2000 12:41:00 PM
From: blake_paterson	Read Replies (1) \| Respond to of 93625

Yesterday's Micron / Samsung news from Taiwan, courtesy of david45431 on Yahoo. Good stuff. Taiwan DRAM makers see windfall in lower overseas production Message 13756780 Taipei, May 22, 2000 (CENS)--Taiwan's leading makers of dynamic random access memory (DRAM) expect to benefit from DRAM production cutbacks from their major overseas rivals Micron Technology of the United States and Samsung Electronics of South Korea. The cutbacks could translate into higher orders for chipmakers here, including Winbond Electronics Corp., Mosel-Vitelic Inc., PowerChip Semiconductor Corp., and Vanguard International Semiconductor Corp. Micron will set aside a quarter of its capacity for 64MB synchronous DRAM (SDRAMs) for the production of Rambus DRAM (RDRAM) and flash memory. The company is expected to reduce its DRAM production to four million chips a month in the second half, a million chips less than the original target. Samsung plans to expand production of RDRAM to 10 million chips a month in the second half, fivefold its current output. The Korean company will also redirect production capacity from SDRAM to flash-memory. The United States accounts for 16.7% of world DRAM output, followed by South Korea's 15.8%, and Taiwan's 13%. Market analysts here predict that the DRAM cutbacks by Micron and Samsung will largely benefit Taiwan's DRAM makers, most of which are improving their processing technology. Vanguard president Paul Chien pointed out that 64MB DRAM chips, which remain the flagship product in the global memory-chip market, are the dominant memory chip product made in Taiwan. Sales of RDRAM, he said, will rise to 100 million chips worldwide this year, but they will account for only 5% of world DRAM market. Frank Huang, PowerChip's chairman, indicated that the reduced production of 64MB DRAM in the U.S. and Korea will strain supply of the chips especially in the second half, when demand is estimated to burgeon. Strengthening markets for Microsoft's Windows 2000 and personal computers will be the major elements behind the booming demand for DRAM in the second half, he said. Officials at Mosel-Vitelic noted that most of Taiwan's DRAM makers will begin volume production using advanced new technologies in the second half. These advanced processing technologies will enable them to slash production costs while increasing output at a time when DRAM prices begin picking up.