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[Page 13 article from the 1998.08.05
issue of Nihon Keizai Shinbun. Translation by J-Tech Translations,
801 Country Place Dr., #109, Houston, TX 77079, Phone: 281-556-1709.
Fax: 281-556-5147.]
Abandonment of DRAM Becomes Apparent - Good-bye to Japanese
Domestic Production of Next-Generation DRAM
Background: Major Japanese manufacturers of 256 Mbit
next-generation DRAM appear to be significantly modifying their
business strategies. This change is due to the huge investment
required for DRAM manufacturing equipment. If DRAM is manufactured
within Japan, due to great price uncertainty and the high added cost
of domestic production, it is highly likely that Japanese
manufacturers will not survive worldwide competition.
Article: It is highly likely that the 256 Mbit DRAM market
will weaken. Although the major volume production time period still
lies ahead for 64 Mbit DRAM, the price for 64 Mbit DRAM has already
fallen to $8 per chip. It is likely that the price of 64 Mbit DRAM
will drop to the $5 range in 1999 due to the disturbing effect of
256 Mbit chips upon the DRAM market.
However, it appears that the DRAM cost for Japanese DRAM makers is
30% higher than that of US-based Micron Technology (Idaho) and the
Taiwan-based makers. It is likely that Japanese makers will be left
behind by severe price competition. Naotoshi Akigusa, president of
Fujitsu, says that Japanese market strategy will need to change
(including business down-sizing) if we assume that the DRAM market
will not recover.
It can be said that this changing strategy is symbolized by the
shift in production focus by Hitachi and Fujitsu, since these
companies are clearly abandoning production of DRAM within Japan.
Hitachi will depend upon the production of high performance
microprocessors, the SH series, a core technology for system LSI
(Large-Scale Integrated circuits) playing a major role in the era of
digital information consumer goods. Fujitsu is able to compete
internationally with top class technology in the field of flash
memory, etc. Masanobu Ishihara, an executive at Hitachi, says that
Hitachi will grow by pursuing technology in which Hitachi excels,
while avoiding dependence on DRAM alone. |
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