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

To: Skeeter Bug who wrote (52068)	10/31/2000 8:55:13 AM
From: DJBEINO	Read Replies (3) \| Respond to of 53903

DRAM makers expect slower ramp-up of 12-inch fabs Taipei, Oct. 30, 2000 (CENS)--Taiwan chipmakers estimate that most of the world's 12-inch silicon-wafer fabrication plants, or fabs, will reach peak output of dynamic random access memory (DRAM) two quarters behind schedule due to construction slowdowns. Industry sources in Taiwan attribute the slowdown to a shortage of financing at a time when DRAM prices are collapsing. Micro Technology Inc., Samsung Electronics Co., and Hyundai Electronics Industries Co., the world's top three memory-chip makers, have slashed DRAM prices by two-thirds since the third quarter of this year. According to the American IC Exchange, spot price for 64Mb DRAM bottomed out at US$4.2 a chip in Oct. 29 trading. Chip prices fell lower to US$3.8 in Asian markets, close to the cost of making the chips with 0.175-micron processes. Frank Huang, chairman of PowerChip Semiconductor Corp., recently noted that the price slump since the third quarter had made it difficult for domestic and foreign chipmakers to finance plant expansions. He estimated that the 12-inch fabs planned by South Korean and Japanese manufacturers would be delayed by at least two quarters. The delays, he said, would push back the supply glut to 2003. Samsung's share price has plummeted to 140,000 won (US$124 at US$1:1130 won) from the first half's 400,000 won (US$354). Micron's shares have retreated to US$30 a share from US$80 three months ago. In Taiwan, Winbond Electronics Corp., Mosel-Vitelic Inc., PowerChip, ProMos Technologies Inc., and Nanya Technology Corp. have seen their share prices tumble by an average of 60%. Local DRAM makers blame part of their troubles on slackening growth in the personal computer market, a trend they say will continue into the near future. PC makers are already shifting their emphasis to Internet devices, hoping to stimulate demand for low-priced PCs, servers, and peripherals. Market researchers including World Semiconductor Trade Statistics, Inc. (WSTS), International Data Corp. (IDC) lately predicted that world DRAM output would fall short of demand until 2003, when 16 12-inch fabs now under planning were slated to begin pilot production. Average DRAM prices were thus forecast to exceed US$8 a chip this year and 2001 and fall to US$3.8 in 2003. Based on these estimates, most chipmakers in Taiwan decided to delay capital increases for their 12-inch fabs until this month. Winbond, Mosel-Vitelic, Nanya, PowerChip, and Vanguard International Semiconductor Corp. are estimated to put out a combined one billion 64Mb DRAM chips in 2001, representing around 21% of world production. Most of the island's DRAM makers have announced their forecasts of 64Mb DRAM prices for next year. Nanya, the most pessimistic, forecasts prices to hold at US$5 a chip, below the average forecast of US$5.5 per chip. They estimate that chip price forecasts will continue to be revised downwards into the first quarter of next year, with a limited rebound after that time.