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To: Ian@SI who wrote (22143)6/3/1999 9:23:00 PM
From: D. K. G.  Respond to of 25960
 
Samsung Will Build New 256-Megabit DRAM Line
(06/03/99, 7:47 p.m. ET)
By Jack Robertson, EDTN
techweb.com
Samsung Electronics plans next year to construct a 256-megabit DRAM production line in South Korea, a company spokesperson said Thursday.

Samsung currently makes limited quantities of 256-Mb chips on its lines in Kiheung, South Korea. The 0.18-micron Line 9 being installed in Kiheung is expected to mass produce the chips.

The spokesperson didn't elaborate on any details, includingwhat the level of investment would be to create the new line. Industry sources said Samsung could use the new 193-nm-wavelength DUV lithography system to push the DRAM shrink race through the 256-Mb generation.

The new capacity is expected to keep the South Korean company in a dominant global position for 256-Mb. It would let Samsung match the production ramp-up of Micron Technology and the recently announced production hike in new-generation DRAMS by NEC.

The investment in the 256-Mb line would be part of a $3 billion stock-rights sale that Samsung is floating on the market this month. A portion of the funds will also be used to expand existing chip lines, although no details were given. The remainder of the cash will be used to retire existing debt and expand telecom-equipment production lines, according to the company.

An erroneous wire service story Wednesday said that Samsung would use the entire $3 billion for semiconductor capital investment in 1999. Exactly how much will be used for that purpose remains a point of some uncertainty. Samsung Electronics America officials in San Jose, Calif., said chip-capital expenditures this year would be just under $1.8 billion. But the company spokesperson in Seoul said semiconductor capital investment will be $1.2 billion.