Infineon (IFNNY)

[javadreams]

News - 15.01.09 16:52 capacity reductions allows to rise prices of memory chips during nearly two years the prices of memory chips knew only one direction: down. Now it looks in the opinion of the market observers of Dram-Exchange, however, in such a way as if the driving downhill is finished, finally. MUNICH. A reason for it are the capacity shortenings of all big suppliers, informed the Taiwanese experts yesterday. From September till the beginning of January the manufacturers of the so-called Drams have produced about one fifth less than before. This provided during the past days for the fact that the prices stabilised and rose even easily: According to chip the customers had to pay in the beginning of this week at the market for short-term delivery between five and 16 percent more than still in the second January week. During two years the producers have accumulated before losses of ten billion dollars according to Dram-Exchange because of the huge overcapacities. Last no supplier earned more money, even industry top of the class Samsung hard has to fight. According to the market researchers of I-Suppli the turnover of the industry has sunk the last year by about one fifth on about 25 billion dollars. During the last months many manufacturers have shut up outdated plants. Besides, about the turn of the year the producers closed down numerous factories temporarily. The warehouses thereby emptied. "We do not go out from quick rest", Hynix head Kim Jong-kap damped at the beginning of the week the expectations. However, the Chairperson of the Executive Board of the second largest Dram producer of the world calculates, at least, on the fact that the industry the low in the fourth quarter in 2008 strode through has. Last Hynix had been able to escape only by a credit of 600 million dollars of state banks. Also the highly deficit German competitor Qimonda should soon receive public money. The inhabitants of Munich hope for advance of a total of 325 million euros. The sum divide the free state Saxony and the country Portugal. Majority owner Infineon contributes 75 million euros to the rescue of his former memory section. In Taiwan the government is also short to take the local Dram producer under the arms. Yesterday the risen Dram prices have not impressed the stock exchange. On the contrary, the rate of the Qimonda stocks noted in New York fell in early trade about 16 percent on about 36 US cents. jojo