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Analysts predict Taiwan DRAM meltdown

For a few dollars more
Wednesday, 25 July 2001, 11:11
ANALYSTS AT ABN Amro are predicting that memory prices will fall by another 15 per cent during the second half of this year and most Taiwanese manufacturers will suffer losses due to oversupply.

That follows ProMOS's announcement last week that it would make a loss for 2001, due to overstock and lack of demand.

ProMOS is a joint venture with Infineon and local manufacturer Mosel Vitelic.

According to the Economic News, ABN Amro said that 128Mbit DRAM memories will hover around the $2-$3 mark during the second half of this year. The EN quotes an analyst as saying "all DRAM chipmakers" will post losses because of the price of the parts.

That forecast is echoed by Salomon Smith Barney, which also sees many DRAM firms making losses during 2001. µ

* THE SAME paper says that mighty Formosa Plastics, which owns Via and a heap of other IT companies, is to show a 42-inch plasma panel early next week, and ship over 7000 of them in the first year of production.

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