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Technology Stocks : Lam Research (LRCX, NASDAQ): To the Insiders -- Ignore unavailable to you. Want to Upgrade?

To: etchmeister who wrote (5763)	6/24/2008 12:42:55 PM
From: etchmeister	Respond to of 5867

InSpectrum: Defective Samsung chips, but not 80 million of them Printer friendly Related stories Comments Email to a friend Latest news Esther Lam, DIGITIMES, Taipei [Tuesday 24 June 2008] After reviewing recent DRAM price trends in both the spot and contract markets, memory-specialist research firm InSpectrum noted that the relative stable pricing could not justify recent claims that a batch of 80 million (in 1Gb equivalent) 68nm-made DRAM chips from Samsung Electronics were defective, as such a volume would be sure to affect both DRAM markets in a noticeable manner. Given that a batch of 80 million DRAM chips in 1Gb-equivalent densities translates to about 7-8% of present monthly global capacity, an absence of noticeable price volatility indicates that the speculated amount is exaggerated, Atlas Kuo, CEO of InSpectrum, indicated. Kuo noted that sources close to the situation indicated that Samsung informed customers that a batch of about 10-20 million 68nm DRAM chips (in 1Gb equivalent) had to be recalled in May. However, this batch of DRAM chips, which had already packed as modules, could easily be replaced without much negative impact being observed in the market. A production issue involving a process using chemical gas was the reason for the defect, Kuo stated. Since equipment indicators failed to deliver a timely report about the unexpected issue, defective chips were produced without notice, Kuo cited sources at Samsung as saying. Given that the production issue occurred during a specific process using a specific set of equipment, the corresponding impact was limited, he noted. Kuo noted that the impact from this incident is much less influential than a fab power blackout, like the one that happened at Hynix Semiconductor's Wuxi, China fab in late May. Any power outage at a DRAM fab implies a complete production shut down with all wafers at every process being affected, he explained. By looking at recent DRAM pricing, the price trend has indeed suggested that the impact was marginal, Kuo said. Recalling process transition issues at 90nm at Inotera Memories in 2006, DRAM pricing in both the spot and contract rose at the same time. Spot price of 1Gb DDR2-667 (US$) Source: InSpectrum, compiled by Digitimes, June 2008 Spot price change by day for 1Gb DDR2-667, May-June 2008 () Source: InSpectrum, compiled by Digitimes, June 2008 Contract price of 1Gb DDR2-667 Source: InSpectrum, compiled from Digitimes, June 2008 Toshiba ASIC Design digitimes.com