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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: Chas who wrote (31622)	4/1/1998 11:30:00 PM
From: Keither22	Respond to of 53903

Wasn't today's run-up an orchestrated short squeeze? By Fidelity's boys? Are they going to continue it tomorrow? Thanks, Keith

To: Chas who wrote (31622)	4/3/1998 9:27:00 AM
From: Neal R. Gorenflo	Read Replies (1) \| Respond to of 53903

DRAM charges go public... Friday April 3, 6:41 am Eastern Time Taiwan DRAM makers warned of next U.S. charges By Lawrence Chung TAIPEI, April 3 (Reuters) - Taiwan officials on Friday urged the island's chipmakers to be prepared for further dumping charges by the United States after the imposition of punitive tariffs against the island's static random access memory chips. Officials said the U.S. International Trade Commission's decision on Wednesday to impose punitive tariffs on Taiwan's SRAMs was likely to spark another round of U.S. actions against the more important dynamic random access memory, or DRAM. Taiwan Economics Minister Wang Chih-kang and manufacturers said the U.S. action would not substantially harm the island's semiconductor industry because both the output and export of SRAM to the United States are limited. Wang nonetheless warned of possible U.S. actions against DRAM -- Taiwan's major semiconductor item -- which constituted six to seven percent of 1997 global sales of US$22.1 billion. ''We should watch closely for future development of the DRAM products to make sure that they would not become the next U.S. dumping-charge target,'' Wang told reporters. Chen Ruey-long, Board of Foreign Trade director, said his bureau has invited chipmakers and other computer manufacturers to discuss the issue in a meeting scheduled to be held on Saturday. ''It is important for the manufacturers to be able to exchange information on anti-dumping actions in the United States and find solutions beforehand,'' Chen said. He said it is necessary for the chipmakers to diversify their export markets to avert huge loss over anti-dumping charges. Local newspapers said U.S. chipmaker Micron Technology (MU - news), which filed complaints at the International Trade Commission against Taiwan and South Korea for SRAMs dumping, was planning DRAM dumping charges against Taipei. The newspapers said Micron started gathering proof against Taiwan's DRAMs sales since the second half of 1997. It originally planned to file another complaint at the commission in the first quarter of 1998 but delayed its action. Analysts, however, said it might not be easy for Micron to raise anti-dumping charges against Taiwan. ''How can Micron charges others for dumping DRAM in the U.S. market when its DRAM price is the lowest?'' said Alex Chen, research manager of HSBC James Capel Taiwan Ltd. Micron's DRAM is sold at around US$2.5 per chip, while that of Taiwan is about US$3.5-US$4, Chen said. Chen said most Taiwan makers produce the chip for large American computer companies, including Texas Instruments. When their earnings have already been undermined by low-priced personal computers, they would not tolerate any anti-dumping action against DRAMs produced outside the United States, Chen said. Neal Stovicek, international market analyst of National Securities, noted that if dumping accusation against Taiwan's DRAMs is proven true, it would be the PC makers rather than the chipmakers who will suffer. ''There will be a negative impact on Taiwan PC makers,'' Stovicek said, noting the consequential increase of DRAM prices. Other potential impacts include the loss of the DRAM market share in the United States, Stovicek said.