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

To: Proud_Infidel who wrote (37239)	9/12/2000 9:11:51 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Flash Memory Microchip Prices Likely to Decline September 12, 2000 (TAIPEI) -- Because desktop PC and communication products have recently seen sluggish market growth, flash memory devices are likely to experience price cuts. As several market research groups have recently lowered their estimates for shipments of computer and communication products for the second half of the year, the prices of 2MB and 16MB flash memory products will likely slip by 30 percent in the coming six months. The 2MB flash memory device has been widely used in motherboard's BIOS. In the light of the motherboard sector's worse-than-expected performance this year, many facilities that make flash memory devices have expanded production and ended up supplying more products than warranted by actual market demand. The price of 2MB flash memory has slipped from US$3 to US$2, which will result in motherboards seeing greater price cuts. Winbond Electronics Corp. and Macronix International Co., Ltd. are the only 2Mb flash memory suppliers in Taiwan. Because Macronix International only supplies a few manufacturers, the prices won't see much of a fluctuation for the company. Winbond Electronics, on the other hand, pointed out that if the prices continue to fall, the market mechanism will likely prompt a reshuffling of the sector. High-density flash memory devices, which are widely used in cellular phones, are expected to see price cuts of up to 28 percent beginning in the fourth quarter of this year and the first quarter of 2001. This is because cellular phone demand won't see an upward spiral before the first quarter of next year. The flash memory manufacturing heavyweights Intel and AMD will increase their production capacities next year. Makers of cellular phones predicted that 16MB flash memory prices won't remain at the same level if cellular phone demands fails to rise. Related story: Intense Competition Expected in Flash Memory IC Market (Commercial Times, Taiwan)