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To: Math Junkie who wrote (24608)	9/24/1998 8:49:00 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 70976

TOKYO (Nikkei)-Japan's five memory chip manufacturers will by next spring reduce domestic production of 64-megabit dynamic random-access memories by about 30% from levels initially planned, which would leave their monthly output in Japan at a total of 35 million DRAMs, sources at the companies said Thursday. The firms have been losing money on their DRAM manufacturing operations due to the collapse in chip prices that began early in 1996. None of them currently plan to increase production in fiscal 1999 or later. Mitsubishi Electric Corp. (6503) will cut domestic 64M DRAM output 10% to 4.5 million units by next spring. The company has been consigning production to Taiwanese firms and will give them more work if demand rises next year. NEC Corp. (6701) will slash output to 10 million chips from 15 million. Toshiba Corp. (6502) will reduce production to 7 million chips from 10 million. Managing Director Koichi Suzuki said, "Profitability of the DRAM business is on the decline and the company plans to cut production in value terms toward the year 2000." "Prices of 64M DRAMs may fall to $5-6 per unit next year, from $8-9 at present," said one executive at a major manufacturer. But prices of chips produced in Japan probably won't drop much below $8 despite serious cost-cutting efforts, industry analysts said. (The Nihon Keizai Shimbun Friday morning edition)

To: Math Junkie who wrote (24608)	9/24/1998 8:52:00 PM
From: Ramsey Su	Respond to of 70976

Can they make up their mind as to what is the right thing to do? Ramsey TOKYO (Nikkei)-The recent move by Japanese chip manufacturers to start shutting DRAM factories and to slash investment on mass production could not have come at a worse time, says Akira Minamikawa, a senior analyst at high-tech research company IDC Japan Ltd. Supply of DRAMs surpassed demand last year by 9%, with supply totaling 2.66 billion worth of 16-megabit chips versus demand of 2.44 billion, an IDC study reveals. The excess supply was due to a slump in the growth of personal computer sales. Supply is expected to top demand by 2% this year and 1% next year, but demand is likely to outpace supply by 4% in 2000. "A DRAM shortage may emerge next summer or later," says Minamikawa, suggesting that Japanese chipmakers who slash DRAM production may be left behind. Meanwhile, Micron Technology Inc. of the U.S., the world's largest 16M DRAM chip maker, will sharply boost production from next year and will buy a stake in KTI Semiconductor Ltd., offering its mass production know-how to boost production there. KTI Semiconductor is a subsidiary of Kobe Steel Ltd. (5406) and was originally set up as a joint venture between Kobe Steel and Texas Instruments Inc. KTI's monthly domestic production of 64M DRAM chips will rise to 11 million chips in September 1999 and 16 million by December, taking it past NEC Corp. (6701) to become Japan's leading DRAM maker, says an official at Kobe Steel. (The Nihon Keizai Shimbun Friday morning edition)