Japanese memory chip makers savor rise in U.S. sales but move cautiously

Article Abstract:

Semiconductor sales are increasing worldwide, driven by surging demand for microcomputers in the US. Japanese chip vendors, which lead the market, are particularly benefitting. Data collected by World Semiconductor Trade Statistics Inc indicate that worldwide sales of dynamic random access memory (DRAM) chips have risen 29 percent in 3rd qtr, 1992, to $2.16 billion, from $1.67 billion in 3rd qtr, 1991. Orders for DRAMs have also risen. NEC Corp claims orders in Sep and Oct 1992 are 40 percent higher than the monthly average in the first half of 1992. Japanese companies have been hit by competition from South Korean companies, such as Samsung Electronics Company Ltd and Gold Star Electronics International Inc. The US Department of Commerce intends to impose tariffs on Samsung and Gold Star for allegedly dumping DRAMs in US markets. Such a move may benefit the Japanese chip makers.

Marketing, International aspects, International markets, Price cutting, Korea, South, Outlook, Economics of Computing, World Market

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Bad times are just a memory for DRAM chip makers; as firms scramble to meet demand, analysts wonder if boom will last

Article Abstract:

The surging DRAM chip business is causing many analysts to predict the industry will move away from its cyclical tendencies towards steady growth. Three years of annual growth rates averaging 40% will enable the South Korean, Japanese and US companies that dominate the industry to divide $51 billion in projected revenue this year. Companies active in the market are enjoying operating profits as demand for memory chips increases. Memory chips are being incorporated into products ranging from computers to microwave ovens. The digital revolution is expected to push DRAM revenues to $90 billion in 1998. However, immense government-supported South Korean companies and new competition threatens to expand capacity to the point that some analysts predict a surplus of DRAM as early as 1996. Surplus DRAM chips will indeed cause the industry to relive its boom.

Forecasts and trends, Market Trend/Market Analysis, Industry Trend Or Event

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Silicon duel: Koreans move to grab memory-chip market from Japanese; their strategy should sound familiar to Asian rival: out-invest, hire the best; next target: laptop screens

Article Abstract:

South Korea's top semiconductor manufacturers are preparing to grab most of the global memory-chip maket away from Japan. The competition from Korea is a serious and potentially damaging setback for Japan, which has previously dominated the $22 billion memory-chip market. Korea's reversal of fortune is due in part to heavy recruiting of experienced engineers, aggressive pricing policies and constant investments in new factories. Korea's competitive drive is expected to affect more than just the memory-chip industry. Memory chips are being utilized in a variety of devices, including cellular phones, PCs, cars and stereos. Strong sales of home and business PCs have helped chip sales jump 30% to 50% annually for several years. Global annual chip sales are expected to reach $170 billion by 2005.

Semiconductor memory, Computer memory, Market share, Foreign Competition

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