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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (37221)	9/11/2000 9:49:14 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Taiwan DRAM Sales Likely to Hit NT$250 Billion in 2001 September 11, 2000 (TAIPEI) -- According to the world's top six IC study institutions, the global production value of dynamic random access memory chips is likely to reach US$48.8 billion in 2001, up 54.5 percent year-on-year. The biggest five DRAM manufacturers in Taiwan, including Winbond Electronics Corp., are expected to seize 22 percent of the global market by shipments in the coming year and generate total sales of more than NT$250 billion. (NT$31.09 = US$1) Winbond, Mosel Vitelic Inc. (including its subsidiary Promos Technologies Inc.), Powerchip Semiconductor Corp., Nanya Technology Corp., and Vanguard International Semiconductor Co., Ltd., the five local memory chip giants, estimate that they will ship a total of 1.2 billion units of 64Mb DRAMs in 2001. Based on the average unit price of US$7, Taiwan's DRAM output value is expected to exceed NT$250 billion. Moreover, local DRAM manufacturers pointed out that a high profit margin of 50 percent for Taiwanese DRAM providers in 2001 is expected. They believed that most memory chip manufacturers in Taiwan would adopt the 0.175 micron manufacturing process next year for 64Mb DRAM production, which is expected to reduce the manufacturing costs to US$3.2 or less per unit. This suggests that local chip makers can keep their profit margins at 50 percent as long as the unit price of 64Mb DRAM stays above US$6.5. According to American IC Exchange, the spot price of Taiwan's 64Mb DRAM took a rebound on Wednesday, and was traded at between US$7.65 and US$8.1. Executives of Powerchip Semiconductor and Nanya Technology are optimistic that sales and profits in November will soar. They predict that the unit price of 64Mb DRAMs will bottom out in September and reach a peak in November, the expected peak season for local chip makers' shipments. For 2001, Powerchip Semiconductor and Nanya Technology both expect to achieve earnings per share of more than NT$6, based on forecast production of between 200 million and 270 million units, and a contract price of at least US$6. (Commercial Times, Taiwan)