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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Jay M. Harris who wrote (4238)	12/31/1997 5:47:00 AM
From: ForYourEyesOnly	Respond to of 10921

Korean Chip Investments Cut Up to 50 Pct December 30, 1997 (SEOUL) -- With the stringent management and restructuring of businesses under the International Monetary Fund (IMF) bailout terms, Korea's semiconductor industry plans to cut investment in 1998 by 30 percent to 50 percent compared to 1997. Korean semiconductor makers, which grew steadily since 1990, fear that their share will dwindle drastically in the world market. The reduced investment in DRAM chips in particular is expected to help Korea's rival companies in Japan and Taiwan eat into Korea's global market share. Korea currently accounts for 50 percent of the global DRAM market. Samsung Electronics Co., Ltd., the world's leading memory chip producer, came up with a belt-tightening plan of a 30 percent cut in overall investments, and it is considering further cuts in coming weeks. Samsung Electronics invested 1.3 trillion won (US$992 million) in semiconductors in 1997, 330 billion won in LCDs and 680 billion won in R&D. The company decided to temporarily earmark 800 billion to 900 billion won for semiconductors and LCDs in 1998 and 400 billion to 500 billion won for R&D. LG Semicon Inc. and Hyundai Electronics Co., Ltd. are following suit. LG Semicon plans to lower investments by 30 percent, or 1.05 trillion to 1.10 trillion won for in 1998, while Hyundai Electronics is considering a 40 percent cut. However, the two companies have yet to finalize their plans. LG Semicon said it will delay the construction of its second LCD plant in southern Korea and focus mainly on 64Mb DRAM production. In addition, LG and Hyundai are re-examining their plans to construct semiconductor plants in the UK, although both firms claim that they will go ahead with plans as scheduled. Anam Industrial Co., Ltd., the chip-packaging specialist that was supposed to invest 570 billion won in 1998, down 30 percent from 1997, lowered investments 20 percent more to 370 billion won right after the announcement of the IMF loan conditions. However, Anam said it will push its original schedule for expanding digital signal processing chip lines. Dongbu Group decided to postpone indefinitely its entry into semiconductor production, citing difficulties in borrowing money. (Maeil Business Newspaper, Korea)