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To: LLCF who wrote (6673)	8/15/1998 10:10:00 PM
From: Clarksterh	Read Replies (1) \| Respond to of 10921

DAK - Jeez, its amazing how a people with no "will" to succeed could have such great success in other cultural areas like sports and ballet... and where are all these aggressive business people that the "reds" are complaining about (becoming rich off the rest of the poplulation and the government sell offs) coming from? I don't think anyone said that the Russians do not have a will to succeed, but just that they have no history of the kind of culture that allows them to succeed economically. This is in contrast to, say, China or the Baltic Republics where there are still some people who 'remember' a semi-capitalistic life before communism. Thus they have to make a cultural shift which is notoriously difficult to do, and is likely to take a generational shift or two. Clark

To: LLCF who wrote (6673)	8/16/1998 10:54:00 AM
From: Jim Willie CB	Read Replies (2) \| Respond to of 10921

tidbit on Russian economy 1/3 of all business activity is within their black market... perhaps the largest black market in the world, more like a barter market now using US$ more and more 1/3 of all businesses in Russia do not pay their proper taxes... stems from black barter market their federal govt is simply destitute old school above board citizens have little concept of profit/loss, asset/debt since profit is vile... new school below board citizens live and thrive in the black barter market... gonna be interesting to see how it all plays out... definitely a consumer market though, not in the same league as Asian who live to export two cents, Jim Willie

To: LLCF who wrote (6673)	8/16/1998 12:11:00 PM
From: goldsnow	Respond to of 10921

Will 'Big Three' Dominate World Microchip Market? 10:01 a.m. Aug 14, 1998 Eastern By Yoo Choon-sik SEOUL, South Korea (Reuters) - After years of sliding prices, the time is drawing closer for computer memory chip makers to consider seriously whether to remain in the industry. Three to four will possibly survive, with others choosing to focus on niche businesses, thinning out the ranks of the crowded dynamic random-access memory (DRAM) industry, analysts say. The squeeze on profit margins is likely to get tighter in the years to come, exacerbated by Asia's slumping economies, they add. The projected slump in demand from Asian economies that up until last year were boasting some of the world's fastest growth rates will worsen an already severe global oversupply of memory chips, leading to a new cycle of weak prices. Two companies have already vowed to exit -- Siemens plans to close its 15-month-old semiconductor plant in Britain and Texas Instruments Inc. is to sell its memory chip business to Micron Technology. Analysts see Micron, South Korea's Samsung Electronics and Japan's NEC Corp. as the most likely survivors. ''A clear distinction between winners and losers is emerging, and within two years, the world's DRAM market will be dominated by the Big Three -- Samsung, Micron and NEC,'' said Yoshiharu Izumi, analyst at SBC Warburg Japan. The recent deal to buy Texas Instruments' memory chip business will make Micron into a strong player in the next few years. Current leader Samsung will likely retain its leadership. It has the advantage of accumulated know-how, efficient management skills and a stable supply of funds from other affiliates of the Samsung Group to which it belongs. Analysts say NEC's strong non-memory chip business, such as ASICs (applied specific integrated circuits), will allow it to continue its massive investment in DRAMs, buttressed by a strong technical edge and marketing. Those three companies and Texas Instruments accounted for 45 percent of the global DRAM supply in 1997. Many of the current DRAM makers will probably opt to turn toward niche areas, such as foundry business or the non-memory chip industry, to remain afloat, analysts say. HSBC Securities Japan analyst Naoki Sato said he expects other makers, like Toshiba Corp., Hitachi Ltd. and Fujitsu, to continue DRAM production but mainly for internal use and maintaining their skill. Among the three South Korean chip makers, LG Semicon Co. and Hyundai Electronics Industries Co. are expected to keep producing DRAMs, but for only a small portion of the world market or even for specific vendors. ''Intel wants to secure a stable supplier of chips and is expected to increase purchases of Rambus DRAM chips,'' said Joo Dae-young, an analyst at the Korea Institute for Industrial Economics and Trade (KIET). ''For that, the possibility is high for LG Semicon to become a stable supplier of the chips in exchange for capital injection by Intel,'' he said, referring to the ongoing negotiations between the two on a stake investment. Analysts in Seoul said they were skeptical about the proposed idea of two or three large conglomerates, also called chaebols, swapping business lines. Since his inauguration in February, President Kim Dae-jung has urged the country's top chaebols to accept ''Big Deals,'' as the business swaps are called in the country. The most widely talked about scenario has the LG Group handing over its chip-making business to the Samsung Group, Samsung selling its automaking business to the Hyundai Group and Hyundai its petrochemicals line to LG. But complicated ownership relations within each group and expected quarrels over how to fairly assess assets could turn those Big Deals into no deals, analysts say. ''It's very unlikely any big deal would be realized. There are many problems, some existing and some expected to emerge,'' said KIET's Joo. LG Semicon and Hyundai Electronics are expected to seek ways to keep afloat through self-rescue efforts, even if that means falling from the ranks of industry leaders. Hyundai has already sold its U.S.-based customized chip subsidiary, Symbios, to LSI Logic and spun off its personal computer division. It has also cut off a big chunk of its considerable work force through early retirement packages and sold off its stake in Globalstar LP. LG Semicon has accumulated a technological edge in production of Rambus DRAMs by adopting Rambus' technology format, and will probably do its best to join hands with Intel, which has been testing Rambus DRAM chips. Copyright 1998 Reuters Limited.