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To: DJBEINO who wrote (39002)	9/25/1998 12:39:00 AM
From: phbolton	Respond to of 53903

At $5-6 a pop MU loses how many hundred mil per quarter? Also, how many million 128/256 chips are NEC etc going to be producing each month by spring? 5 million? 10 million?

To: DJBEINO who wrote (39002)	9/25/1998 12:40:00 AM
From: Skeeter Bug	Read Replies (1) \| Respond to of 53903

dj, critical thinking class. pay attention now ;-) >>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<< the cut was from plan. it is also domestic "cuts." foreign outsourcing is not included (see below). expect more expansion from current levels. >>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. << ok, one japanese firm is merely outsourcing their dram production and not building in japan. net effect on supply? marginal at best. >>"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<< japan has been very competitive in the dram market. what is true for them is pretty much true for everyone else. this is a prediction OF CONTINUED LOSSES FOR THE INDUSTRY THROUGHOUT 1999. now dj, since this is such great news, go out and buy some more mu tomorrow ;-)