Japan chip makers reach agreement with EC on prices

Article Abstract:

Eleven Japanese semiconductor chip makers have agreed to set minimum prices on dynamic random access memory (DRAM) and other chips exported to the European Community (EC). The agreement has advantages for both sides. Demand for DRAMs is still greater than supply in Europe, so market prices will not have to increase. Steep anti-dumping duties will be removed as long as Japanese chip makers keep DRAM prices at around eight percent above average production cost. EC gained rights to inspect plants and records of Japanese manufacturers trading in Europe. The 11 companies involved are Fujitsu Ltd., Mitsubishi Electric Corp., NEC Corp., Toshiba Corp., the Japanese subsidiary of Texas Instruments Inc., Matsushita Electric Industrial Co., Sharp Corp., Sanyo Electric Co., Mineba Co., and Oki Electric Industry Co.

Semiconductor chips, International aspects, Pricing, International relations, International trade, European Union, DRAM (Dynamic random access memory), DRAM, European Economic Community, Pricing Policy, European Community

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NEC discusses an agreement with Samsung

Article Abstract:

NEC Corp is talking with Samsung Electronics Co, but details of the agreements or contract have not yet been confirmed. According to representative from both companies, NEC and Samsung are only at a planning stage and have not yet agreed to share any technologies. Industry analysts believe the two companies might discuss Samsung's supplying NEC with lower-level memory chips or the joint development of memory chips in the future. Samsung is a South Korean company that is not constrained by the US-set price floors and therefore can offer products at prices lower than Japanese rivals. This helps Samsung gain greater market share and drive chip prices down. The costs of chip-making have created a market in which companies are now looking for partners to share manufacturing costs.

Samsung Electronics Company Ltd., Product development, Market share, Strategic Planning, Integrated Circuits, Cooperative Agreements

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AT&T to get license from NEC that lets it enter a chip market; U.S. giant to share capacity under gate-array pact; more talks are planned

Article Abstract:

NEC Corp and AT&T agree to share semiconductor technology. Under the five-year agreement, NEC will grant AT&T a license to market, design and produce current and future generation NEC gate-array chips. In return, NEC will receive some design processes and capacity. NEC also commits to purchase more chips from AT&T. Gate-array chips make up only 6 percent of the total semiconductor market, but they are growing at twice the rate of the total market. The move will help AT&T with its goal of becoming a semiconductor supplier and not simply meeting its internal needs. Both companies say that if all goes well, this will not be the end of such agreements.

United States, T, United States foreign relations, International competition (Economics), American Telephone and Telegraph Co., Gate arrays, Technology transfer, Japanese Competition, Foreign Investment

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