Texas Instruments cites surplus of memory chips
Article Abstract:
Texas Instruments (TI) admits at its annual conference with analysts that memory chip prices are falling thanks to an oversupply that results from slowing demand for PCs. The announcement caused TI's stock to drop $2.75 to $47.625 per share. In 1995, TI had a 27% sales increase to $13.1 billion, but the company anticipates that the following years will see the annual increase linger around 20%. TI earns $2 billion in revenue from DRAM chips. TI states that a 4MB DRAM chip that cost $12 in Dec 1995 will fetch only $6.50 to $7 in Mar 1996, although officials do believe that sales will gain strength again in the second half of 1996 as the economy improves, and that sales may return to Dec 1995 levels by 3rd qtr 1996. TI plans $2.5 billion in capital spending in 1996, up from $1.4 billion in 1995, reflecting the company's confidence that industry sales will be $350 billion by 2000, up from the $140 billion in sales in 1995.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Talks seen on sale of a Texas Instruments business
Article Abstract:
Texas Instruments is in preliminary talks to sell its memory-chip operations to Micron Technology for an undetermined amount, according to insiders. The sale would represent a significant move for Texas Instruments, a top computer chip producer whose earnings have been weakened by overproduction and lower prices for D-RAM chips. The price of D-RAM chips, which account for around 10% of Texas Instruments's sales, has plummeted from more than $8 in 1997 to $3 each. The company will report $850 million in revenue from D-RAM chips in 1998, according to analysts's estimates. Texas Instruments would benefit from the sale by focusing on the growing digital signal processor market, according to Salomon Smith Barney. A sale would provide growth-minded Micron Technologies with the necessary additional market share to challenge offshore rivals.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
The stuff that chips are made of; MEMC's long-term formula for success: equal parts sand and grit
Article Abstract:
MEMC Electronic Materials Inc's primary line of business focuses on the production of blank silicon wafers that form the basis of semiconductor products such as microprocessors and memory chips. MEMC, the industry's leading non-Japanese supplier of silicon wafers, is forecasted to report over $1 billion in annual revenue for the first time on Jan 27, 1997. Despite the slight loss that MEMC is anticipated to reveal for the quarter due to the chip market slump of 1996, MEMC's shares are reported to have risen to $27.50 on Jan 24, 1997, an increase of $2. In response to individual demands of microchip manufacturers for compatibly designed wafers with their respective products, MEMC produces more than 1,000 various types of wafers equipped with precise specifications for electrical properties, silicon purity and surface coatings.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The robustness of hierarchical Bayes conjoint analysis under alternative measurement scales. Newsgroup participants as opinion leaders and seekers in online and offline communication environments
- Abstracts: The truth about excuses. Beware of business scams
- Abstracts: Reconsidering the strategic implications of decision comprehensiveness. Managing firm resources in dynamic environments to create value: Looking inside the black box
- Abstracts: NYNEX, Bell Atlantic set merger. Telecom sale to Italian firm folds. AT&T announces plan to split apart
- Abstracts: The invention of the independence condition for preferences. Unreasonable rationality?