The 128M memory chip, which has twice the capacity of its 64M cousin but half that of the 256M, is likely to become an intermediate product in the last quarter of 2000. The bonanza from the current rally should help chip companies prepare for the changeover. If the price is right, DRAM-making can be incredibly profitable. The DRAM-makers are now minting money. America's Texas Instruments got out of the business last year.
Investors are happy too.
Hyundai makes as many DRAM chips as Samsung, but its production costs are higher, its debts are bigger and extra expenses are heavier this year because of an ongoing merger with LG Semicon. What a reversal of fortune. Just a year ago, DRAM-makers were reeling. Most were losing money or just marginally profitable. Companies were shutting down production for weeks on end to cut inventories and boost prices.