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

To: VLAD who wrote (42011)	1/7/1999 9:16:00 PM
From: PAinvestor	Read Replies (1) \| Respond to of 53903

There is a shortage of capacity below 0.25 micron which is what you need to produce a competitive (ie. profitable) 64meg these days. Samsung's internal Book-to-Bill ratio is currently an unbelievably high TWO times. That means they are getting two orders for every shipment that they make. Hmmmmm, no wonder they were rumoured to say no to further 64meg orders from distributors. Anyway, they are making 64meg SDRAM (PC-100, CASL2 compatible which is mainstream these days) on these lines at full capacity and people still cannot get enough. Remember the other half of the equation. Intel has specified that memory must be compatible with their high speed processors must run according to certain standards. Their specs have made it very hard for chip makers to supply the quantity and quality of DRAM that OEMs require now. That is one of the reasons why an industry shakeout is occuring. If you can't supply what the market wants, you lose money, you die. Simple. There are plenty of other types of DRAMs being produced at much lower capacity utilization. Even the lowly 4meg still out there. But it is not making much money 'cos that ain't where the demand is. So not every line is running at full capacity, only the ones that count!