January 20, 1998 (TOKYO) -- The price of 16M DRAMs is rebounding rapidly in Japan's domestic spot market.

According to a survey by Nikkei Microdevices, the spot price of 16M EDO DRAMs hit an all-time low in December 1997, when it fell to 250 yen (US$1.94) a piece.

However, it has been increasing sharply to 400-450 yen (US$3.10- 3.49) since the second week of January 1998, a rebounding to the level in mid-November 1997. A U.S. DRAM manufacturer said the rebound was caused by the suspension of shipments by Korean DRAM manufacturers.

Analysts in the semiconductor industry share the opinion, saying that there are Korean DRAM manufacturers whose stocks were exhausted and whose production was decreased.

Industrial sources said the decrease in DRAM production in Korea was caused by the sharp depreciation of the Korean won in the foreign exchange market, making it harder for Korean DRAM manufacturers to procure materials from abroad.

(Nikkei Microdevices)