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To: Chas who wrote (51429)	6/10/2000 9:33:00 AM
From: Chas	Respond to of 53903

DRAM chip shortage forecast to get worse DRAM prices are surging as computer manufacturers are moving to increase inventory ahead of the high season in the third quarter, Daewoo Securities said in a report yesterday. The report said the recent steep rise in memory prices could be seen as an indication of supply shortages in the market. It expected supply shortages to worsen with the approach of the high season and boost the prices of 64M DRAM chips to above $8 per unit. The 64M DRAM chip spot market price increased 3.2 percent May 30 and again 2.3 percent the following day, reaching $6.85, the highest since late February. The hike in the spot market price led Samsung and Hyundai to raise their prices quoted for large-volume customers. Daewoo said Intel's CPU supply is back to normal after an accident in a Mexico plant, and the high season is on its way. Intel's decision to lower CPU prices spurred sales of high performance computers and raised the demand for DRAM chips. "Samsung Electronics has only 1-2 weeks of supply, far below the appropriate inventory level of 4-5 weeks, and the shortage will get worse as manufacturers prepare for the Christmas season in the third quarter," said Chon Byung-seo, a Daewoo securities analyst. He forecast a 30 percent increase in DRAM chip prices will bring Samsung Electronics and Hyundai Electronics $1 billion more in profits over the first half of this year, and recommends both semiconductor manufacturers as a strong buy. Updated: 06/06/2000 The Korea Herald