07.16.2001
Technology migration to increase supply

• Development: Local DRAM manufacturers are progressing into technology migration. ProMOS will begin 0.14um production in their 12-inch fab by October, Nan Ya Technology has started a 0.14um pilot run, Winbond’s 10% capacity is now in 0.16um mass production, and Powerchip will commence 0.15um mass production in 2Q02.

• Analysis: While we expect these companies to improve their competitive position by advancing technology, we are concerned with the incremental supply resulting from the migration in 3-6 months’ time, if DRAM demand continues to remain weak.

• Primasia View: We remain cautious on the outlook for this sector on the whole.

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