More DRAM contracts include planned price cuts

Article Abstract:

According to some major DRAM suppliers, planned price reductions are included in more purchasing contracts to encourage DRAM customers to use high-density, new memory chips. Price reductions are being planned because many OEMs are reluctant to use new DRAM generations after having dealt with shortages of 4Mb chips in recent years. However, DRAM manufacturers are looking for customer committment as they increase production of next-generation devices and invest in costly, new fabrication plants. Industry observers report that the lowest average selling price for 64Mb DRAM is anticipated to be about $25 in 2003, compared to $12.50 for 16Mb DRAM in 2000. In 1996, 16Mb DRAM prices are expected to decrease between 5% and 10% based on contract agreements and increased volumes. DRAM manufacturers are shifting most of their production to 16Mb chips. Market estimates for 16Mb DRAM revenues will reach $33.4 billion in 1996, increasing from $17.82 billion in 1995.

Prices and rates, Dynamic random access memory, DRAM (Dynamic random access memory), DRAM, Market Trend/Market Analysis

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Why chip executives want a new, global book-to-bill index

Article Abstract:

Semiconductor companies are lobbying to eliminate the antiquated American book-to-bill ratio as a valid economic indicator in a world market. The book-to-bill figure is released every month by the Semiconductor Industry Assn (SIA) and the last time the group altered its interpretation of it was in Jan 1995 when it began to take into account seasonal changes. Though some have criticized the changes, others are in favor of it and the industry can expect more changes to come soon. The main criticism of the current book-to-bill is that it only measure shipments in the Americas, and many US-based semiconductor companies do half of their business overseas. The SIA adopted the book-to-bill ratio as an economic indicator in the early 1970s; it was originally created by Jack Beedle.

Management, Industry trend, International markets, World Market

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