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To: John Graybill who wrote (42642)	2/1/1999 7:40:00 PM
From: IceShark	Respond to of 53903

all my bets are with the CBOE! You would get better odds with the mob, but CBOE is better than the IL lottery scam, I guess.

To: John Graybill who wrote (42642)	2/1/1999 11:29:00 PM
From: DJBEINO	Respond to of 53903

LG Chip Shutdown Hits DRAM Market From Electronic News--February 1, 1999 By Robert Ristelhueber San Jose--A labor strike has shut down chip production at LG Semicon, threatening OEMs with tighter supplies and higher prices for dynamic RAMs. LG is estimated to supply 10 percent of the world's DRAMs. There was quick evidence last week that the strike is already having an impact on the spot market. "We saw on Tuesday a couple of aftermarket outlets coming in looking for product, and price didn't seem to be an issue," said Jamie Stitt, business development manager for DRAM products at Toshiba America Electronic Components, Irvine Calif. Those aftermarket buyers, whom he described as module and retail outlets, paid "significantly over $10" for the 64meg synchronous DRAMs, Stitt added. The DRAM market remains in oversupply, so the shutdown of LG's fabs probably won't impact large OEMs immediately. But a prolonged work stoppage would undoubtedly have an effect on contract pricing, the benchmark used by major users of semiconductors, analysts say. The strike was prompted by the pending merger of LG Semicon with Hyundai (EN, January 11). About 8,000 workers walked out of LG's eight production lines in Korea, fearful they could lose their jobs as a result of the combination. Hyundai has said that all LG employees would be retained, but didn't guarantee them employment for five to seven years as LG has demanded. It seemed unlikely that the strike would threaten the merger, which is being orchestrated by the Korean government. Reports from Korea indicated the government would mediate any disputes between Hyundai and LG in an effort to wrap up a merger agreement. The government has embarked on a policy of pressuring the country's huge chaebols to consolidate their operations in order to improve efficiencies. "The bottom line is that the prestige of the Korean government is behind this merger," said Steve Cullen, an analyst with Cahners In-Stat Group, Medfield Mass. "I just can't see them backing down." LG supplies 7-8 percent of the world's DRAMs under its own name, and provides Hitachi with about a quarter of that company's DRAMs, according to Cullen. Hitachi accounts for about 9 percent of the market's supply of DRAMs. There were reports last week that the Hitachi-LG supply agreement was being terminated. An inquiry on Friday to Hitachi in San Jose was referred to the company's Tokyo headquarters. The LG shutdown is adding fuel to the upwards trend in pricing that has been evident recently. "We have seen some tightening of supply and firming of prices over the past 45 to 60 days," said Ben Schwartz, vice president of strategic marketing for Jaco. Prices have climbed 15 to 25 percent during that time, he said. "If there is a further tightening of supply, we are confident a number of our customers will migrate to 128meg, which is being ramped up by Samsung." Toshiba's Stitt noted that demand for DRAM remained strong in December, a period when demand usually slumps. He said 64meg parts sell for $9 to $11 at major accounts, and he's heard of even higher prices in some instances. Price escalation has been even greater for 16meg parts because many suppliers, including Toshiba, have left that market, (EN, Nov. 16, 1998). Prices for 2kx8 synchronous parts were generally in the $2.50-$2.80 level, but EDO is particularly scarce and sells as high as $5, Stitt noted. LG produced 16meg parts at the fabs hit by the work stoppage. The labor turmoil in Korea is likely to further unsettle OEMs who are counting on that country to supply much of the Direct Rambus chips in the second half of this year,Stett said.. "Mergers present very difficult issues, so there are not just short-term customer concerns here."