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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (1488)	12/26/2001 12:01:27 AM
From: The Ox	Read Replies (1) \| Respond to of 95411

Are we starting to see demand pick up? Could this be the tip of the iceberg? Taiwan DRAM Makers Sharply Higher on Planned Kingston Order TAIPEI, Dec 26 (AFX-ASIA) - DRAM makers were sharply higher in early trade, with sentiment given a boost by Kingston Technology's comments that it plans to buy 10 mln DRAMs per month next year from local producers, dealers said. The lead came at a time when investors are engaged in year-end window-dressing, and are optimistic over an increase in DRAM prices next year. At 10.22 am, Winbond Electronics Corp was up 1.30 twd at 20.90 on volume of 110.39 mln shares, while Mosel Vitelic Inc rose 0.90 to 14.45 on 127.84 mln shares, and Nanya Technology Corp added 2.10 to 32.70 on 54.01 mln shares on the main board. Powerchip Semiconductor Corp was up 1.20 at 18.80 on 19.65 mln shares on the TAISDAQ. All of them were limit-up. The electronics sector was up 0.76 pct. The weighted index was up 21.78 points at 5,394.59, off a high of 5,481.62 and a low of 5,348.15, on turnover of 82.32 bln twd. "Investors responded warmly to the reported increase in contracts as investors have already pinned hopes on firmer DRAM prices next year, following the move by major South Korean suppliers to raise the 128Mb DRAM price to 2.30 usd next month," IBT Securities deputy manager Wang Chum-yuan said. Should the 128Mb DRAM price rise to 4.00 usd next year as forecast by Kingston, domestic DRAM-maker share prices may rally by some 60 pct, he said. "A surge to 4.00 usd cannot be ruled out in the second half of next year but I would expect a more reasonable level of around 2.5 usd in the first half," he said Fundamentally, DRAM prices are seen on an upturn given the ongoing consolidation among suppliers, he said. While the combined monthly orders of 10 mln DRAMs from Kingston will generate revenue for Taiwan's suppliers, the magnitude would not be significant given their capacity, he said. "It's just that the right lead came at the right time," he added.