To: Skeeter Bug who wrote (34525 ) 6/8/1998 12:24:00 AM From: DJBEINO Read Replies (2) | Respond to of 53903
MAJOR STATEMENT BY SAMSUNG:"The company will continue to cut back on production until the chip supply gut has been resolved," Samsung (KOREA:05930) to suspend making memory chips SEOUL, June 8 (Reuters) - Samsung Electronics Co Ltd on Monday said it would suspend production of all memory and most non-memory chips for seven days beginning on June 14 in response to a worldwide glut and falling prices. "Holding 19 percent -- 22 percent for 64-mega DRAMs and 11 percent for 16-mega DRAMs -- of the world memory chip market, Samsung Electronics is the top producer, hence the company's decision to suspend operations is expected to have a major impact," the company said in a statement. DRAM is the acronym for dynamic random access memory chips. The company said more than 25 percent of its world memory chip supply would be reduced as a result of the suspension. "This is expected to have a strong psychological effect on the market and help to turn prices around," it said. The suspension would affect all memory fabrication lines at the Kiheung plant and memory assembly lines at the Onyang plant, Samsung said. Non-memory lines, except those filling orders already received, were also scheduled to go down, it said. Samsung also said it would curtail production of SRAMs (static random access memory chips), flash memory chips, non-memory devices and other key products for seven days. "Therefore, the price impact will go far beyond the DRAM markets," it said. Samsung said it had already taken steps to ensure that customers with long-term contracts would not suffer any ill effects from the production suspension. "The company will continue to cut back on production until the chip supply gut has been resolved," the statement said. Samsung's decision was expected after Hyundai Electronics Industries Co (KOREA:00660) said it would suspend computer chip production for one week from June 3. The third big South Korean chip maker, LG Semicon (KOREA:29890), has said it also was considering curtailing chip production.