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To: Skeeter Bug who wrote (39004)	9/25/1998 12:43:00 AM
From: DJBEINO	Read Replies (2) \| Respond to of 53903

Japanese Chipmakers Wrong To Cut Production: IDC Japan 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.