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To: DJBEINO who wrote (3897)	9/3/1998 12:14:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

ANALYSIS - CHIPMAKERS ANTICIPATE MARKET RECOVERY TOKYO, Sep 01, 1998 -- Following a long period of slumping sales, electronic device manufacturers have been encouraged by signs of recovery in both the DRAM and LCD markets as supply tightens. Overseas spot prices for 64-megabit DRAMs shot up by as much as 30% from a month earlier in late August, while DRAM prices for July shipments for volume users have remained unchanged from June. According to analysts, some users of high-speed synchronous DRAMs now fear a supply shortage. Demand for the memories are high as personal computer makers have started stockpiling them ahead of the release at year-end of high-performance PCs meeting Intel Corp.'s PC-100 chip standard. Only three or four companies, including NEC Corp. and Samsung Electronics Co. of South Korea are estimated to have a sufficient supply of synchronous DRAMs. Although the companies expect business to remain sluggish through this fiscal year, they are forecasting considerable improvement in fiscal 1999. LCD prices have also stopped falling. A senior official of Display Technology Inc. said the LCD joint venture between Toshiba Corp. and IBM Japan Ltd. had been receiving orders in excess of production since May. The outlook was similar at Sharp Corp., NEC and Hitachi Ltd. Since LCDs are increasingly used in desktop PC monitors, some analysts believe the market will face a supply shortage in the Oct.-Dec. quarter. The LCD market is stabilising as South Korean makers, who triggered the collapse of LCD prices with discounts late last year, have been keeping prices steady. But electronic devicen makers are looking forward to seeing further price recoveries for both DRAMs and LCDs. The current price levels are still not high enough to make new facility investments viable. In addition, some smaller DRAM makers are believed unable to turn a profit at current price levels as their production costs do not yet match those of major producers.