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

To: Proud_Infidel who wrote (6199)	5/28/2003 7:38:15 AM
From: Fred Levine	Read Replies (2) \| Respond to of 25522

TAIPEI -(Dow Jones)- The worst may be over for makers of dynamic random access memory chips used in personal computers, as demand from China returns and a new product by Intel Corp. (NasdaqNM:INTC - News) pushes per chip DRAM prices higher, market researcher DRAMeXchange said Wednesday. The company, which tracks DRAM prices through industry contacts as well as its own online trading center, also reported stable prices for the most widely used chips Wednesday. The spot price of mainstream, 256 megabit double data rate chips that run at 266 megahertz remained steady at US$3.18 Wednesday after falling to a recent trough of US$3.00 per chip two weeks ago. Analysts had predicted spot prices of DDR-266 might fall to as low as US$2.50 per chip in late May and lead to steep losses for DRAM makers such as Hynix Semiconductor Inc. and Nanya Technology Corp. . However, it appears the worst has passed, according to DRAMeXchange. The online memory chip broker said stores in China are restocking shelves with new PCs now that severe acute respiratory syndrome, or SARS, appears to be more under control and shoppers are returning. DRAM prices tend to rise when more computers are sold since more of the chips go into PCs than any other product. The company also said the launch of a new, lower cost Intel chipset that pairs its top central processors with speedier DRAM chips has boosted prices for high- end DDR-400 chips. Taiwan's Powerchip Semiconductor Corp. and ProMOS Technologies Inc. stand to benefit the most early on from the price rises since they sell more products on the open market, rather than by contract, said one analyst. Contract prices, negotiated between DRAM manufacturers and PC makers such as Dell Computer Corp. (NasdaqNM:DELL - News) , lag spot prices since the latter are used in the negotiations. Citing signs of improving DRAM market conditions, a low valuation and progress on manufacturing chips in its state-of-the-art chip factory, J.P. Morgan Chase & Co. upgraded Powerchip to 'overweight' from 'underweight' Wednesday. Securities firm ING Financial Markets Tuesday reiterated its 'buy' recommendations on Powerchip due to its low costs and rival Winbond Electronics Corp. since it has been "good" at diversifying into other kinds of chip products. -By Dan Nystedt, Dow Jones Newswires; (8862) 2502-2557; dan.nystedt@dowjones.com -Edited by Debra Boyce