Chip firms ready to cut, cut and cut again

FIVE LEADING DRAMURAI are readying themselves to cut capital spending in 2008.

The Taiwan Economic News, quoting a market analyst, said that Micron, ProMOS, Samsung, Hynix and Nanya will be the chieftains in the cost cutting exercise.

Yesterday Hynix warned that things were not rosy in DRAM sales and it expected to turn in a Q4 loss, unless the wind blew it out of the doldrams.

But IC Insights has apparently said TSMC, UMC, Chartered and SMIC are also expected to take a carving knife to their cap expenses next year.

The Dramurai opened up 12-inch fabs a few years ago, and that's led to piles of DRAM chips hanging around waiting for enough buyers to reduce the memory mountains. µ

L'INQ
Taiwan Economic News