Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: phbolton who wrote (39955)	10/15/1998 10:20:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 53903

Sudden Rise In Memory Semi-conductor Price 10/15 Due to voluntary control by demand and supply by Korean and Japanese semi-conductor companies, the trend shows that with dramatic consumption of stockpile of chips coupled with sudden rise in yen value, it has caused rise in semi-conductor price. Recent rise in DRAM prices is attributed by the rise in price of actual goods market and fixed exchange rate. Japanese semi-conductors are not ruling out the possibility that there will be additional rise in prices raising expectations that Korean companies will benefit from yen appreciation. On October 14, the prices of 16Mega-DRAM and 64 Mega-DRAM are sold at $2 and $10 respectively and has been consistent ever since. But lack of goods supply is pushing the price upwards to $2.50 and $11.00 respectively. Price at goods market has risen by 30 to 40% compared to May and June. Increase in price is caused by continued decrease in production and shrinkage of DRAM business due to foreign business as well as overall decrease in supply rate of the goods market. Together with the actual price of the goods, the fixed exchange rate,which is hardly influenced by price fluctuations, is also showing rapid increase in price for the first time in two years. Just in May and June alone, 64-Mega DRAM cost $8.00 but the price rose by 10% at the request of Korean and Japanese companies to $9.00. Overall trend for the DRAM is that the price of DRAMs are on the rise. Due to appreciation of yen, the cost price has risen for Japanese DRAM companies, which are considering additional raising of prices. This will have an added benefit of raising the competitive profile of Korean semi-conductor companies and increase the market share for Korean industries. Related to this, an official says that if the yen appreciation continues, Japanese companies will be under pressure to raise their prices and that will lead to further increase in prices of world semi-conductor market.