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To: DJBEINO who wrote (3730)	8/2/1998 11:55:00 PM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

NEC (6701) To Pull Back On Chip Production TOKYO (Nikkei)-NEC Corp. will reduce capital spending on chip production by 30 billion yen to 150 billion yen in fiscal 1998, company sources said. It will also delay by a year to early 2000 the start-up of a new domestic plant. NEC had been the only major semiconductor manufacturer enjoying strong earnings, but the company expects revenues to plummet in the current fiscal year due to such factors as a larger-than-expected fall in memory chip prices. Japan's leading chipmaker will slash planned production of its mainline DRAM chips, which continue to see lower profitability. Although output of 64-megabit memories will initially be raised from the current monthly figure of nearly 8 million chips to 10 million by December, the figure will not be increased from next year. NEC had originally planned to boost monthly production to 15 million chips by mid-1999. Output of 16-megabit chips will be clipped from the current nearly 6 million chips to 2 million. NEC, which has many profitable chip-related products, netted some 50 billion yen in profit in fiscal 1997 despite the slumping market.