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To: DJBEINO who wrote (36372)	7/19/1998 10:03:00 PM
From: DJBEINO	Read Replies (1) \| Respond to of 53903

LG Semicon joining the crowd.... LG Semicon shut down its production line for five days, between July 1-5, in an effort to stabilize the semiconductor price. Samsung Electronics and Hyundai Electronics Industries are also planning to curtail their production of semiconductors at the end of this month. Samsung and Hyundai had halted their production of semiconductor chips for a week last month in vein effort to maintain adequate semiconductor prices. LG Semicon temporarily closed its factories in Chungju and Kumi and stopped its assembly lines between July 1-5. An official from LG Semicon said, "We have decided to suspend our production line temporarily, because, with the current price of DRAM, it is simply unprofitable." LG Semicon expects to reduce its July production volume of 64-megabit DRAM to 5 million and 16-megabit DRAM to 16 million. An industry source said, "Due to the overinvestment during the last two or three years, 64-megabit DRAMs are still oversupplied by 20-30 percent." Since the production curtailment last month, 64-megabit DRAM chips are being traded at 8-9 dollars apiece, up 0.2-0.5 dollars from the previously depreciated price. However, it is still below cost and further production cut is inevitable, the source added. Domestic semiconductor manufacturers occupy 35 percent of world DRAM market share. Comparably, Japanese chip makers account for 35 percent of the world market share while Taiwanese and US chip makers combinedly account for 25 percent of market share.