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To: Ramsey Su who wrote (6735)	8/18/1998 11:26:00 PM
From: Fortinwit	Read Replies (1) \| Respond to of 10921

Ramsey, In addition to your article, I have heard from folks in Roseville (CA) that NEC are having stealth production cutbacks. In addition to the annual shutdown (which just took place), the plant will be shutting down on each of the remaining holidays this year. This is a first as the plant has only had the summer shutdown in each of the years since it came on-line in 1992, and had been considered one of the more profitable fabs (or least expensive these days) in the NEC company. This leads me to believe that NEC do not see any near-term change in the supply/demand equation. F.

To: Ramsey Su who wrote (6735)	8/19/1998 9:37:00 PM
From: Katherine Derbyshire	Read Replies (2) \| Respond to of 10921

>> is this a hint that DRAM supply is still exceeding demand despite the round of cut backs and shut downs? Ramsey TOKYO (Nikkei)-Toshiba Corp. will reduce production of its mainline 64-megabit DRAMs, company sources said Tuesday. << Sure looks that way to me. If they were making acceptable margins on the chips, they wouldn't go to the expense of retooling. My prediction is that "high-margin" flash memory will be the next sector to see overcapacity problems. Seems like that's where a lot of the excess DRAM capacity has been going. Katherine