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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: Bill F. who wrote (51834)	9/19/2000 3:11:28 PM
From: DJBEINO	Read Replies (1) \| Respond to of 53903

Chip prices in long-term deals stable Despite price plunges on the DRAM chip spot market, Samsung Electronics and Hyundai Electronics Industries should not be seriously affected since the majority of their customers are regulars with long-standing orders, an industry source said. Samsung and its major buyers, computer manufacturers, agreed on a supply price of $7.80 for 64M DRAM chip, $0.50 lower than last month's negotiated price. Hyundai, Micron Technol-ogy and Infinion Technologies negotiated deals at similar prices, the source added. Last month on the spot market, 64M DRAM fetched $8.00, but prices have dropped as low as $7.00 recently. The prices of 64M SDRAM PC100 dropped 3.19 percent to a $6.68-$7.08 range, down 3.19 percent from the previous day. Some predict prices to fall around the $6 level. Samsung and Hyundai negotiate prices twice a month with major computer manufacturers such as IBM, Dell, Compaq and Hewlett-Packard. Analysts say the computer market will reach its peak during the Christmas season, which will once again drive up DRAM prices. "Inventories of DRAM chips do not exceed two-week stockpiles and the goods Micron and Infinion released on the spot market will dry up soon," a Samsung official said. The industry projects the price for regularly supplied DRAM chips will range around $8.00 and rise to $8.50 in November. "The DRAM market index is not measured by spot market trading which accounts for only 5 percent of sales, so the decrease there does not mean an overall plunge," said Chon Byung-seo, senior analyst at Daewoo Securities. DRAM prices rose in the fist half of the year due to a fear of supply shortages, triggering a massive buying drive among computer makers, but with an unexpected slowdown in the global PC market, computer makers have cut back on purchases. Major memory producers such as Micron and Infinion unloaded their products on the spot markets, which caused a sudden drop. Updated: 09/20/2000