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To: StanX Long who wrote (63399)	5/2/2002 11:52:38 PM
From: StanX Long	Read Replies (1) \| Respond to of 70976

BROKER CALL - DRAM chip contract prices may fall further - Hyundai analyst -- AFX - Asia, 5/3/2002 e-insite.net DRAM chip contract prices for Samsung Electronics and Hynix Semiconductor Inc, among others, may fall further in May after a sharp fall in spot prices, Hyundai Securities industry analyst Simon Woo said in a note. "The DRAM chip spot market is in a panic," with 128M-equivalent chips being traded at as low as 2.2 usd after breaching 3 usd last week, he said. Woo noted that the collapse of the Hynix-Micron merger and acquisition deal has prompted international chip brokers to dump their inventories onto the market, while major chipmakers have increased output and major PC makers' orders have slowed down. "Pressures are mounting for a cut in contract prices," he said, adding that some chipmakers have already offered prices below 4 usd. Samsung Electronics will likely see its May contract prices fall to 4 usd from 5 usd in April, while Hynix is expected to cut prices to 3 usd from 4 usd, he said. "Although the weakness in chip prices has been largely expected for the second quarter, the recent fall came in much larger than previously forecast," he said. He projects chip prices to rebound in the third quarter on the back of demand growth for IT goods, including PCs. Even if Micron and Hynix opt for an independent course, pressure on supply will likely emerge as late as mid-2003. "I recommend investors to build up their positions on Samsung Electronics on any sharp corrections," he said, citing its higher-margin and well-diversifed product mix and strong earnings outlook from the third quarter onwards. seo/tr For more information and to contact AFX: www.afxnews.com and www.afxpress.com