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

To: eddie r gammon who wrote (40232)	10/21/1998 9:38:00 PM
From: yousef hashmi	Read Replies (1) \| Respond to of 53903

10/21 06:07 Chip market tightens due to output cuts, PC sales TOKYO, Oct 21 (Reuters) - 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 official said. An NEC Corp <6701.T> official said the company had begun negotiating with volume users for a 10-percent hike in the price for 64 megabit DRAMs. In the spot market, prices for 16 megabit DRAMs have risen by about 50 percent to about $3, said Fujiaki Sato, analyst at Deutsche Bank Group. As for 64 megabit chips, prices had recovered to $9.50 from $9.00, 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 Co Ltd <64050.KS>, Toshiba Corp <6502.T>, NEC Corp <6701.T> and Micron Technology Inc <MU.N>. Wakabayashi added makers of lower-end 64-mega DRAMs will continue to suffer from global overcapacity. Some analysts, nevertheless, are doubtful that recent developments mean that the market's negative trend had been significantly altered. They say the current uptrend will be short-lived in view of prospects of makers boosting production ahead of the year-end Christmas sales season helped by improving production yields. A cloudy U.S. economic outlook also makes sales projections for PCs difficult, they said. "It's just a temporary phenomenon as we have seen in the past three years," said Yoshiharu Izumi, analyst at Warburg Dillon Read. Takashi Mimura, analyst at Societe Generale, said he expects prices of a 64-mega DRAM to remain flat at around $8 to $9 until the end of this year, but drop to around $6 by next March.

To: eddie r gammon who wrote (40232)	10/21/1998 10:58:00 PM
From: DJBEINO	Read Replies (1) \| Respond to of 53903

Micron, electronic component makers' assn may sue Asian cos over DRAM dumping BRUSSELS (AFX-ASIA) - Micron Technology Inc will look at any proposals by the European Electronic Component Manufacturers' Association (EECA) for filing an EU complaint on allegedly dumped dynamic random access memory (DRAM) imports from Asia, European production unit board member Mauro Marcucci said. Marcucci said Micron, which may become a member of the association, has a policy to seek government action against dumping by other producers in whatever region Micron operates. The European Commission rejected an EECA demand for an investigation into South Korean DRAM dumping this summer and told the association to file a complaint which also includes Japan. "I am not saying that Micron will take action against Korea or Japan because we have not looked at the information. But once we have the information, we will fight dumping irrespective of the region," Marcucci said. A Siemens AG source said it is not clear whether EECA will challenge in court the commission's rejection of its complaint or whether it will file another complaint that will include Japan. Any decision will be "a political" one, taking account of efforts to persuade Korea not to use IMF money to support DRAM production, and efforts by European companies to enter the Japanese market, he said. The source said Korean producers with a 35-40 pct share of the EU market are able to set DRAM prices worldwide but added that all producers are currently producing below cost.