Overcapacity is a basic woe

Article Abstract:

The memory chip industry in Taiwan may not yet face better times as the basic problem, which is overcapacity is still unsolved. The demand for memory chips did not increase and it may take several months before manufacturers turn a profit, due to lower chip prices, currency crisis and oversupply. ING Barings analyst Don Floyd said that the oversupply problem will not be solved merely by cutting production for a few weeks. Observers are also not recommending stocks in the memory chip market and advised investors to watch for positive signs such as better demand, or decline in chip supply.

Comment:

Taiwan: Memory chip industry may not yet face better times as the basic problem, which is overcapacity is still unsolved

Taiwan, Semiconductor Devices, Market information - general, Article

Slow growth, falling stocks spur ownership shuffles

Article Abstract:

Declines in stock prices and slow economic growth have spurred Advanced Semiconductor Engineering Inc (ASE) to acquire a controlling stake of 31% in Universal Scientific Industrial Co (USI) which is part of the trend toward restructuring and ownership change in Taiwan's big companies. Consolidation is also another factor in the global computer equipment industry which has affected the trend. ASE's move came after USI suffered stock-related losses following an unsuccessful attempt to prop up its share prices.

Other Electrical Equipment and Component Manufacturing, Electronics, Electronic Components and Accessories, Metal Semicon Pkgs, Plastic Semicon Pkgs, Semiconductor industry, Mergers, acquisitions and divestments, Electronics industry, Metal semiconductor packages, Advanced Semiconductor Engineering Inc., Plastic semiconductor packages, Universal Scientific Industrial Company Ltd.

Overcapacity is a basic woe

Article Abstract:

Prices for memory chips in Taiwan's spot market, one of the most dynamic in Asia, remained unchanged even amid the announcements of price reductions by South Korean and Japanese companies. Moreover, rebound at the bottom line for memory-chip manufacturers may have to wait for several months since 1998 profits have been hurt by declining prices, currency chaos, and a supply excess.

IC Memory Chips, Economic aspects, Semiconductor chips, Integrated circuits, Computer memory