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  • Samsung Electronics to Reduce Chip Output by 25 Percent
  • June 9, 1998 (SEOUL) -- Samsung Electronics Co., Ltd. announced it will suspend production at its two Korean semiconductor plants for seven days from June 14 to prevent chip prices from falling even further.
    The shutdown, which will reduce total production by 25 percent, will cover all memory chip fabrication lines at Samsung's Kiheung and Onyang plants.

    Production of most non-memory IC products, including flash and SRAM chips, also will be cut.

    "Samsung expects the suspension to boost semiconductor prices and we will continue to reduce output until prices stabilize," a company official said.

    Hyundai Electronics Industries Co. suspended its semiconductor assembly lines for one week from last Wednesday, and LG Semicon Co. also will halt production in the coming weeks.

    Prices of 16Mb and 64Mb DRAMs have declined sharply this year, due to the supply glut for the third straight year.

    The temporary suspensions by Korea's top three microchip makers will contribute to reducing the global production level by nearly 10 percent, according to industry watchers.

    (Maeil Business Newspaper)

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    Updated: Mon Jun 8 16:24:26 1998