Decisions by both Fujitsu and Acer to scale back their production of Dram memory chips have so far failed to have an impact on prices of memories, according to the UK channel.
Two weeks ago, Roy Taylor, joint managing director of Vanguard Microelectronics UK, said that oversupply by large manufacturers was crippling prices of Dram, and that the channel would welcome the withdrawal of big players from the industry.
Last Friday, Fujitsu's president said that his company was reviewing its strategy on production of the memories, which have suffered a severe slump in prices over the last year. And Stan Shih, CEO of Taiwanese company Acer Semicon, said that his company was also reviewing production of Dram.
The previous week, unconfirmed reports in the Japanese press said that Hitachi was also set to shut down its Dram manufacturing subsidiary next year. The company has denied it has such plans.
But yesterday, Taylor said prices of Dram remained flat, despite the news. His views were echoed by Alan Stanley, MD of the UK arm of French distributor Dane-Elec. He said that prices were continuing to remain flat or continuing to fall.
Meanwhile, a report in US magazine 'Electronic Buyers' News', said that Samsung, which manufactures over 40 per cent of Dram worldwide, was committed to cutting production throughout 1998. According to the report, Samsung Semicon wanted to take a leading role in ending the oversupply and admitted that profits were being sharply affected by the situation.
According to the report, Samsung Semicon will continue to shut down its fabs one week every month, with the president of the operation calling for other manufacturers to follow its lead.
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