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

To: Jeffrey D who wrote (5154)	1/24/2003 10:19:18 AM
From: Proud_Infidel	Respond to of 25522

DRAM Bulletin: PC recovery seems far off as prices plummet By Nam Hyung Kim Semiconductor Business News (01/24/03 10:01 a.m. EST) The following column was provided to SBN by Nam Hyung Kim, a senior analyst with iSuppli Corp., an El Segundo, Calif.-based market research firm. The combination of weak demand from PC OEMs and a spate of inventory reductions by memory traders and distributors sent DRAM prices down dramatically on the U.S. spot market this week. Pricing for 128-Mbit and 256-Mbit PC-133 SDRAM in the by 8 configuration this week has fallen by an average of 5% on the U.S. spot memory market. Meanwhile, pricing for Double Data Rate (DDR), PC-266 SDRAM in the by 8 configuration has fallen by an average of 12%. While iSuppli Corp. is forecasting a much better year for the PC industry in 2003 than the marginal growth seen in 2002, the computer market presently is experiencing a weak period. iSuppli predicts PC unit sales will rise 13.8% in 2003, compared to 3.9% in 2002. Driving the rise in sales will be an increase in corporate buying, as companies strive to replace aging systems purchased in 1999 in anticipation of possible Y2K disruptions. However, the first quarter typically is slow for the PC market. Exacerbating the slow demand situation is a buildup in inventories of finished PC systems. Both Intel Corp. and Advanced Micro Devices Inc. reported record shipments of PC microprocessors in the fourth quarter. However, actual PC sales growth in the fourth quarter did not match the increase in microprocessor shipments, indicating that inventories of finished computers are on the rise. With ample PC supply already in warehouses, OEMs have slowed their production of new systems, and thus have reduced their DRAM purchasing. Furthermore, the Chinese New Year -- a major gift-giving occasion in many Asian nations -- will fall on Jan. 31, two weeks earlier than normal. Because of this, PC makers attempting to serve holiday demand in Asia already have completed their DRAM purchases for the occasion, making the late January time period even slower than the historical norm. With concern rising about weak near-term DRAM pricing and demand, traders and distributors have begun unloading their inventory before the Chinese New Year, accelerating the price declines on the U.S. spot market. Spot market prices for 256-Mbit DDR already have fallen close to iSuppli's predicted first quarter Average Selling Price (ASP) of $4.90. In contract negotiations, DRAM prices have been undergoing a decline since the second half of November. However, contract prices for the second half of January were mixed, with a 10% increase in SDRAM pricing and a 10% decline for DDR. The rise in contract SDRAM prices has little significance, given that most OEM demand now is for the new-generation DDR DRAM. PC OEMs have largely phased out SDRAM in their products. In a pessimistic harbinger for DDR pricing, contract DDR prices remain higher than spot market prices by more than 10% -- even after recent declines. Because of that, PC OEMs likely will negotiate further decreases on contract pricing in February. Like the global economy, the DRAM market now is struggling with poor visibility. While a recovery in the PC market is predicted, there are few signs of it yet. iSuppli recommends suppliers remain cautious about increasing production until there's more solid evidence that the PC market's recovery has commenced.

To: Jeffrey D who wrote (5154)	1/24/2003 1:02:30 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Samsung Electronics expects chip prices to increase -- Financial Times Limited, All Rights Reserved, 1/24/2003 The Korea Herald via NewsEdge Corporation : 01/23/2003 Samsung Electronics Co. forecast yesterday that the global semiconductor market will grow 22 percent to $173.1 billion in 2003, a significant rise over last year's $142.2 billion. Samsung's optimistic outlook differs somewhat from forecasts made by international market research agencies such as Dataquest and IC Insights, which had earlier predicted milder increases of 12.1 percent and 15 percent, respectively. Samsung's predicted growth rate is also higher than the 19.8 percent forecast by the U.S. Semiconductor Industry Association (SIA). Copyright 2003. All Rights Reserved.