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To: vc21 who wrote (65605)2/8/2001 2:59:22 PM
From: Don Green  Read Replies (1) | Respond to of 93625
 
Toshiba, NEC Restructure To Boost Rambus DRAM Output

Friday, February 9, 2001

TOKYO (Nikkei)--Toshiba Corp. (6502) and NEC Corp. (6701) are restructuring their manufacturing operations to substantially increase output of high-speed DRAMs and reduce production of commodity-grade DRAMs, industry sources said Thursday.

The two companies aim to shore up their faltering microchip businesses as declining prices of lower-grade DRAMs, currently in oversupply, are squeezing profitability at their chip operations.

Both companies will gear up production of Direct Rambus DRAMs, which have a data transfer speed more than twice that of older DRAMs.

Demand for the advanced DRAMs is expected to rise sharply as Intel Corp. is set to procure great quantities for its MPU Pentium 4.

Toshiba will raise its monthly output of Rambus DRAMs to 8 million units, about 60% of the overall DRAM output, from 2.3 million by the end of September.

Meanwhile, the company will halve the monthly output of its commodity-grade DRAMs to 4.5-5.0 million units.

NEC will also raise monthly production of its Rambus DRAMs supplied to Elpida Memory Inc., the joint DRAM sales venture set up with Hitachi Ltd. (6501), to 5 million units from 2 million by September.

(The Nihon Keizai Shimbun Friday morning edition)