(Japanese Site)
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| Samsung Electronics to Reduce Chip Output by 25 Percent
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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.
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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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