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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (469)	11/14/2001 8:26:29 AM
From: Proud_Infidel	Respond to of 25522

hk.co.kr DRAM Chips See Signs of Generation Shift By Kim Sung-jin Staff Reporter The bit cross phenomenon between the mainstay 128M DRAM (dynamic random access memory) chips and the next generation 256M DRAM chips has occurred, and the price of one 256M DRAM chip has fallen below the combined prices of two 128M DRAM chips. Bit cross is a phenomenon where the market standard for DRAM chips shifts and the next generation chip becomes the primary chip in the market. Demand for new product soars, and thus the price per unit, measured in ``bits'' of, lets say, 256M DRAM, falls below that of 128M DRAM. According to a semiconductor market research firm DRAMeXchange yesterday, the average price of the mainstream 128M DRAM (16Mx8 PC 133MHz) chip closed at $1.5 per unit in the Asia spot market on Monday afternoon, up 23.63 percent from the previous day. Meanwhile, the average price of 256M DRAM (32Mx8 PC 133 MHz) chip was closed at $2.87 per unit on the Asia spot market on the same day, up 9.54 percent from a day ago. With the appearance of the bit cross phenomenon, the early starters, including Samsung and Elpida, the joint venture between Hitachi and NEC of Japan, believe that 256M DRAM will outstrip 128 DRAM and become the mainstream chip. In the case of Samsung Electronics, which holds over 50 percent of the global semiconductor market, it plans to proactively cope with the technology generational shift by reducing its 128M DRAM chip production ratio down to 40 percent by the end of the year, from the current 55 percent. It hopes to lift its 256M DRAM production ratio up from 25 to 45 percent. However, there are views that the bit cross phenomenon could possibly be only temporary due to the upsurge in 128M DRAM prices, should the semiconductor industry watch market trends a little more. ``The bit cross phenomenon seen in the Asia spot market is abnormal. When determining the bit cross phenomenon between two types of DRAM chips, the market looks at the OEM (original equipment manufacturing) price of the chips. But the price crossover hasn't yet occurred between 256M DRAM and 128M DRAM. The OEM price of 256M DRAM is currently at the $2.8-3 level and 128M DRAM is at the $1.1-1.2 level. The market needs to monitor how the situation unfolds for a little longer,'' said Han Kwang-ma, marketing manager at Hynix Semiconductor.