Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?

To: wmf who wrote (8978)	6/23/1998 9:13:00 PM
From: Norrin Radd	Read Replies (2) \| Respond to of 11555

I like news such as this, thanks. Before long, the magic upgrades of semi stocks will start. Already a few pundits have stated that chip stocks are oversold/bottoming. Soon more will jump on the bandwagon. When the stocks jump, it happens fast, in just a few trading days for the majority of the gains. The lesson for me is to be established a bit too early, better than too late.

To: wmf who wrote (8978)	6/24/1998 1:17:00 AM
From: SemiBull	Respond to of 11555

SRAMs stay above the pricing fray By Margaret Ryan SCOTTSDALE, Ariz. - Though DRAM prices drifted downward, SRAMs and some other semiconductor products showed signs of recovery in the early part of this year. SRAMs were one of only four IC types that displayed a market increase in the first four months of 1998, compared with the same period in 1997, according to IC Insights Inc. (Scottsdale, Ariz.), a market research company. Analog ICs, MOS special-purpose logic and microcontrollers also showed growth. Digital signal processors are included in the microcontroller category. According to IC Insights, SRAMs were the fastest-growing IC product sector for the period from January to April 1998, compared with the same period one year ago. The findings are included in the firm's June 1998 update to its annual IC industry market review and forecast. SRAM sales grew 33 percent in the first four months of this year, resulting in a year-over-year increase of $355 million. SRAMs were the only product tracked byl IC Insights to show an increase in average selling prices (ASPs) during the same period. ASPs for the four-month period jumped 4 percent for SRAMs over the year-earlier period. SRAMs were the first ICs to display a "post-boom price collapse" in 1995, according to IC Insights, and may therefore be the first to show signs of recovery. Intel Corp. may also have helped SRAM pricing. When the microprocessor vendor chose vendors to supply SRAMs for Level 2 PC-cache in 1997, the companies that weren't chosen were forced either to target other applications or to de-emphasize their SRAM product lines, the report said. Once SRAM prices fell, many suppliers switched horses, and that reduced oversupply. SRAM unit shipments climbed 28 percent in the first four months of 1998. Examining overall IC demand, IC Insights said that six product categories showed better unit growth than the market's 14 percent overall average in the first four months of the year. After SRAMs, analog ICs logged the strongest growth with a 10 percent increase in sales over last year's like period. These products also posted the highest increase in dollar volume ($615 million) and in unit volume (1.3 billion) for the four-month period. The increases were attributed to strong growth in telecommunications-systems markets and to a small drop in ASPs. MOS special-purpose logic sales grew 9 percent over the 1997 period, with microcontroller sales jumping 5 percent and DSP IC sales increasing 22 percent. The two product categories with the biggest negative impact on the early 1998 IC market were DRAMs (sales are down $1.6 billion from last year's level) and microprocessors (down $714 million). Semiconductor capital spending also appears to be declining this year. Worldwide capital equipment spending will decline 12 percent or more this year, matching the 12 percent decline that occurred in 1997. William J. McClean, president of IC Insights, said the decline will help set the stage for the industry's next boom period, which he expects to occur in 2000.