Chip output is being cut by Samsung; oversupply has led to big fall in prices
Article Abstract:
Samsung Electronics Company announces its intention to curtail the production of memory chips by reducing plant operations by two days per month throughout the remainder of 1996. The prices for DRAM chips have fallen more than 300% since late 1995, from $50 to less than $15, slashing profit margins significantly. An industrywide decline in computer sales has led to the substantial oversupply of DRAM chips, as many companies had been ramping up production just as sales were beginning to diminish. The cutback in Samsung's production will reduce the number of 16MB chips the company creates each month from 14 million to 12 million. Analysts suggest that Samsung may also be responding to the threat of a rumored antitrust lawsuit from Micron Technology, accusing Samsung of dumping DRAM chips on the US market below reasonable prices.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Broadcom first-day shares jump 123%; silicon chip maker's initial offering is one fo the biggest ever
Article Abstract:
Broadcom's stock price of $53.625 at the end of the first day of public trading represented a 123% increase from its $24 offering price. The semiconductor company, which supplies silicon chips used for high-speed data transmission over cable TV or telephone lines, enjoyed one of the best-ever initial public stock offerings ever. The Broadcom stock opened at $62 a share and reached a high of $70, illustrating Wall Street interest in Internet-related investments. Broadcom ended the day with a market capitalization of $2.3 billion, despite its 1997 net loss of $1.2 million on sales of $37 million. By comparison, Netscape's stock rose 108% after its first day of public trading, to $2.2 billion. Henry T. Nicholas III and Henry Samueli, who co-founded Broadcom in 1991, own stakes worth $600 million each.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Japan chip maker unveils next-generation prototype; NEC says unit has capacity of 4 gigabits
Article Abstract:
NEC Corp has successfully developed a memory chip with the highest capacity ever, four-gigabits of dynamic random access memory (DRAM). The company claims the prototype chip will be useful in making video editing and data base searching a simpler job for computers and can be used in servers to replay videos-on-demand or music obtained from networks. NEC's new chip has the capacity to store over four billion information bits. The chip's capacity is 256 times that of the chips currently being used in computers to store information. NEC estimates it will begin selling the four-gigabit chips around the year 2000. Some analysts believe this projection date to be premature, with chips becoming big products closer to 2005.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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