To: derek cao who wrote (18086 ) 3/23/1998 12:43:00 PM From: Ian@SI Respond to of 70976
Derek and Thread, Some more bullish indicators for the DRAM market ... BTW, I must be getting less sensitive. I found nothing in Eugene's posts offensive.dailynews.yahoo.com Monday March 23 3:46 AM EST Samsung starts up $700-mil. U.S. plant SEOUL, South Korea March 23 (UPI) _ South Korea's Samsung Electronics Co. Ltd. has started production of semiconductors at a $700-million plant in Austin, Texas. The plant, which was scaled back from two production lines to one, will produce 64-mega dynamic random access memory (64M DRAM) chips used to store memory in computers. Spokesman Raymond Park said, ''The plan was to have two production lines in Austin but only one 64M-DRAM line was completed because one was deemed sufficient to meet current demand.'' Park said a drop in demand forced the company to scale back an initial investment plan of $1.3 billion but Samsung is ''considering adding a 256M DRAM production line.'' Samsung is the world's leading maker of memory chips, recording sales in 1996 of $2.55 billion. The Austin plant staffs 850 people and marks the company's first semiconductor facility outside of South Korea. Samsung operates four production lines in Kihung, 18 miles (30 kilometers) southeast of Seoul. Annual production capacity of the Austin plant is 13,000 8-inch wafers, from which semiconductors are made. A second South Korean company, Hyundai Electronics, plans to unveil a $1.3 billion U.S. plant in the first half of this year. The Hyundai plant, located in Eugene, Oregon, is scheduled to produce 30,000 wafers per year. A Hyundai spokesman said a similar facility slated for Fife, Scotland, is expected to be completed by October but plans to equip the plant will be put off six months to a year. The market for 64M DRAMs, which read 700 megabytes of data or the equivalent of 43,750 newspapers in one second, is expected to lift by mid year. Samsung cited a report by U.S. securities company Smith Barney which forecasted a shortage of 64M S-DRAMs in July.