Mitsubishi sees more weakness for chip prices
Article Abstract:
Mitsubishi Electric sees the current oversupply of semiconductors resulting in low prices well into 1997. Increased production in Taiwan will add to the problem, in spite of decreased production by Japanese and Korean semiconductor vendors. Mitsubishi expects the profits from other areas of the company, including electric power equipment, factory automation systems and home appliances, to balance the lower profits from its semiconductor division. The company derived 20 percent of its overall sales from its semiconductors in the fiscal year ending Mar 31, 1996. This is nearly 40 percent of the company's pretax recurring profits. Mitsubishi has curtailed plans to increase production of 16Mb DRAMS, but plans to increase production of 64Mb DRAMS to three million units per month by the end of FY 1997. The company is also increasing its focus on the PC business and hopes to sell 200,000 PCs in Japan during the next year.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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Chip makers in Taiwan feel slump
Article Abstract:
Taiwan's semiconductor companies have been disappointed in their bet that demand for semiconductor chips would increase, and consequently, Taiwanese electronics companies are losing money. While competitors in South Korea and Japan have prudently cut back on production, Taiwanese memory-chip makers face a problematical future. Texas Instruments-Acer Inc, Taiwan's biggest DRAM company, recorded a loss of 667 million New Taiwan dollars (US$23.4 million) in the first half of 1997, compared with a profit of NT$1.1 billion for all of 1996, and profit forecasts have been revised downward 82% for this year. Another semiconductor company, Nan Ya Technology, expects to lose at least NT$400 million. Taiwanese companies hoped to gain an advantage by investing in a recovery in demand for commodity-like chips ahead of Korean and Japanese rivals, but the recovery has not materialized.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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The chips are down: California loses out on semiconductor plants
Article Abstract:
The semiconductor industry expects to open 14 plants before the year 2000, none of which are scheduled to be built in California, the home of the semiconductor chip. The 14 plants are to be megafabs, or chip plants costing at least $1.5 billion. In 1997, California will produce only 5% of the world's computer chips, compared to 1979 when it produced 43%. California's failure to lure semiconductor manufactures can be attributed to several things; an unpredictable water supply, above average electric bills, terminally high real-estate prices and an underfunded public-school system that produces second-rate graduates, according to industry analysts. The fastest growing market for semiconductors is the Asia-Pacific market and four megafabs are being built there.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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