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To: Skeeter Bug who wrote (39001)	9/25/1998 12:27:00 AM
From: DJBEINO	Read Replies (2) \| Respond to of 53903

Chipmakers To Cut 64M DRAM Output 30% By Spring '99 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 the production cost of chips produced in Japan probably won't drop much below $8 despite serious cost-cutting efforts, industry analysts said