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To: Norrin Radd who wrote (4817)	4/16/1999 11:18:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

04-17-99 Memory makers to benefit from stabilized chip prices Domestic manufacturers of dynamic random access memory (DRAM) chips will likely reap higher than expected profits as their efforts to stabilize memory chip prices are paying off, industry sources said yesterday. Unit prices for 64-megabit DRAMs, which now represents the memory chip market mainstay, fell to the $7 range in March from above the $10-level. But they have rebounded to stabilize at around $8. "Prices for 64M DRAM chips vary according to models on the spot market, but they appear to have stabilized at between $8 and $10," said an official at Samsung Electronics Co. He added that 16M DRAM prices have also steadied at $2.3 to $3.3. The chip industry earlier forecast prices for 64M and 16M DRAMs will hover around $7 and $2, respectively. Analysts attributed the price stabilization to the decline in PC producers' chip stockpiles, combined with solid demand for PCs worldwide. Industry officials said domestic chipmakers will receive higher profits than earlier expected as production technology improves efficiency. "Due to the prolonged slump in DRAM prices, local chip manufacturers sought to improve output efficiency. As a result, production costs are expected to drop soon," said the Samsung official. Despite the stabilization in prices, questions still linger about the prospects of an extended recovery. Analysts said the public's unabated thirst for less-expensive PCs also continues to present a problem. "Demand for memory is not as strong because high-performance microprocessors aren't selling very well," said an official at a local PC manufacturer. (NIS)

To: Norrin Radd who wrote (4817)	4/19/1999 10:56:00 AM
From: DJBEINO	Read Replies (2) \| Respond to of 9582

04-20-99 Hyundai, LG fail to narrow gap in chip merger deal The chairmen of the Hyundai and LG groups yesterday failed to narrow their differences in the valuation of LG Semicon, heightening the possibility of a third-party intervention in the drawn-out semiconductor merger deal. Under intensifying government pressure for faster "big deal" consolidation reforms, Hyundai Chairman Chung Mong-hun and LG Chairman Koo Bon-moo met at a Seoul hotel for two hours with the Financial Supervisory Commission Chairman Lee Hun-jai as mediator. However, the two groups failed to reach a compromise on Hyundai Electronics Ind. Co.'s acquisition price of LG Semicon, with top aides of the two chairman saying that they had nothing to announce concerning the three-way meeting. Leaving the hotel after the talks, FSC Chairman Lee said, "It won't be easy (to settle the chip deal)." According to FSC and industry sources, Hyundai offered to raise its quoted price to acquire the LG Group's 59-percent stake in LG Semicon, or 91 million shares, to 2 trillion won ($1.64 billion) from 1.2 trillion won previously. Yet LG stubbornly maintained its asking price of 3.2 trillion won, the sources said. Despite yesterday's failure to break the deadlock, FSC regulators expressed optimism that the Hyundai-LG chip merger deal may be finalized before top chaebol leaders meet with President Kim at Chong Wa Dae April 26. "Chairmen Chung and Koo consented to the need to wind up the delayed merger talks as soon as possible," said an FSC spokesman. Last week, the FSC warned that the sale price of LG Semicon will be set by a group of bank-appointed experts if a compromise is not reached. President Kim's aides have even threatened to seize managerial control of Hyundai Electronics and LG Semicon by putting them under workout programs, unless the merger talks are finalized immediately.