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To: TigerPaw who wrote (73432)	10/21/1998 11:04:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

'Chip-shape' TP: Interesting bit of news,some say the tightening chip demand is here to stay but some analysts (as always)are skeptical however,we shall see. ============================ Source: Cnet Chip market tightens By Reuters Special to CNET News.com October 21, 1998, 5:00 a.m. PT The computer memory chip market has tightened since mid-October due to production cuts by Japanese and South Korean makers and stronger demand from PC makers, industry officials said. Inventories of the most advanced 64-megabit dynamic random access memory (DRAM) chips, known as CL2, have fallen to almost nil due to strong sales of Windows 98-installed PCs in the United States and European markets, the officials said. "The demand for 64 megabit (DRAM) has jumped. As for high-speed synchronous DRAM chips, inventories have been completely erased," a Fujitsu executive said. An NEC executive said the company had begun negotiating with volume users for a 10-percent hike in the price of 64 megabit DRAMs. In the spot market, prices for 16 megabit DRAMs have risen by about 50 percent to about $3, Fujiaki Sato, analyst at Deutsche Bank Group, said. As for 64 megabit chips, prices had recovered to $9.50 from $9, up from $6.50 in May, he said. "I'm bullish about the prospect for high-end 64-mega DRAMs," Dresdner Kleinwort Benson analyst Hideki Wakabayashi said. Globally, only four makers will be capable of producing CL2-type 64-mega DRAMs--Samsung Electronics, Toshiba, NEC, and Micron Technology.