07.03.2001
DRAM production experiences cuts

• Development: Hynix (S Korea) announced plans to cut DRAM production starting in July. Overseas DRAM makers, including Micron (US), Infineon (Germany), and Samsung (S Korea) have internally planned to switch this year’s 300mm-fab CAPEX to technology migration and delay 300mm-fab projects until after 2002.

• Analysis: Hynix’s cut accounts for approximately 3-4% of worldwide supply and focuses mainly on 64Mb. Many producers have already started geometry shrink, which is expected to increase capacity by as much as 30-40% by Y/E 2001.

• Primasia View: A spark for the industry in the short-term, but we remain concerned about the expected new capacity in a six month time horizon.

LindaLiu@Primasia.com +886-[0]2-2547-8867