Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Proud_Infidel who wrote (38519)	10/19/2000 10:24:52 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Samsung, Hyundai to Boost 128Mb DRAM Output The world DRAM market is expected to be reformed centering on 128Mb DRAMs as Samsung Electronics Co Ltd and Hyundai Electronics Co Ltd expand large capacity DRAMs. Preparing for increased demands, Samsung and Hyundai decided to expand large capacity DRAM production while reducing 64Mb DRAM production. Around the end of this year, Samsung expects the production of 128Mb DRAMs to shift from 10 million units per month to over 20 million units, and 256Mb DRAMs from 1 million in the first half to 1.4 million in the second half. But the company will reduce 64Mb DRAM output to 20 million units in the second half from 26 million units a month. Hyundai is also considering expansion plans for 128Mb DRAM output to 80 million units per month in Q4 from the current 65 million. Then, 128Mb DRAM production is expected to take 36% of Hyundai's full DRAM production. In Q4, the company expects 256Mb DRAM production to be over 1.4 million units per month from the current 400,000 units, increasing 6% in the whole production, while 64Mb DRAM production will be decreased to 41 million units from 45 million units per month. Identifying Trend DRAM manufacturers did not expect the move to large capacity DRAM chips in PCs to come this early. The trend probably pushed Samsung and Hyundai to go ahead with their expansions, industry experts believe. Originally, both companies expected the turning point for larger capacity memory chips such as 128, 256Mb DRAMs to be middle of the next year. However, they introduced the expansion plan earlier since orders from big PC manufactures including IBM, Compaq and HP have created demand. Thus, large capacity DRAM markets will be growing explosively due to Samsung and Hyundai's move. The expansion of large capacity DRAM production among the domestic big players is not only due to increasing demands. Experts here say that it is a part of their strategies to check DRAM manufactures in Taiwan and Japan. Toshiba restructured the DRAM business centering on 128Mb DRAMs and has continued investing in it. NEC also moved the 64Mb DRAM production bases to Scotland and China, and now concentrates on producing 128Mb DRAM chips in Japan. Domestic companies didn't expect the demands for large capacity DRAM chips to be so high and have deployed the business gradually. The expansion strategies that Samsung and Hyundai made are also expected to create a big gap with Taiwanese companies, which are aggressively chasing domestic companies. Yet Taiwanese companies are still concentrating on 64Mb DRAMs. Market Effect A generation change should happen in the semiconductor industry around the end of the year, industry watchers believe, with 128Mb DRAMs becoming mainstream in the market next year, taking over 60%. A phenomenon that unit cost per bit of 128Mb DRAMs decreases compared to that of 64Mb DRAMs is expected to occur in Q4 this year and boost the trend towards large capacity DRAMs. The generation change in the memory chip market will result in leading companies that can take a greater share in large capacity DRAMs dominating the market. Samsung started its 10th production line in September and this will bolster its expansion plan. by Luz Park, Seoul (October 2000 Issue, Nikkei Electronics Asia)