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To: Paul Lee who wrote (7656)	6/5/2000 9:26:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

Shortage of DRAMs to Continue in 3rd Qtr.: Daewoo Securities The shortage of dynamic random access memory chips will continue in the third quarter of this year with prices for the 64 megabit units increasing to the $8 range. Daewoo Securities analysts said yesterday in a report that the prices of DRAMS have already turned around and this trend should continue now that the shortage appears to be long-term. The prices of 64M units increased 3.2 percent on May 30 and 2.3 percent the next day, pushing it up to $6.85, the highest since the end of February, they explained. The main reason for the shortage is that Intel's factory in Mexico has been normalized and is turning out normal quantities of central processing units, or microprocessors. The increase in the production of CPUs means an accompanying increase in the demand for DRAMs. In addition, memory devices are heading into their peak months, the analysts said. ``What is even better is that Intel slashed the prices of its microprocessors at the end of April and this has created new demand for powerful high-end personal computers. ``This is not a peak season for personal computers but inventory at Samsung Electronics, for instance, is at one to two weeks, way below the normal four to five weeks,'' one analyst said. He went on to say that the current level of inventory is similar to that around Christmas and that the shortage of DRAMs should continue into the third quarter of this year. Should DRAM prices increase by 30 percent, Samsung and Hyundai Electronics Industries would make additional profits of around $900 million to $1 billion in the first half alone. ``We are suggesting that investors snatch up shares of the two companies because their profitability even in the long-term is excellent and is poised to get even better,'' the analyst said. 2000/06/05 17:51