***Global Players Set Up Alliance in Microchip Development
(January 18)
According to Agence France Presse, six of the world's
semiconductor firms have announced an alliance in technology
development aimed at setting a global standard for next-
generation microchips. The firms, which agreed to the landmark
tie-up included US-based Micron Technology and Intel Corp.,
Infinion Technologies of Germany, Japan's NEC, and South Korea's
Samsung Electronics and Hyundai Electronics Industries. According
to South Korean semiconductor industry officials, these companies
control a combined 80 percent of global microchip production.
The companies said in a joint statement they would "cooperatively
develop a high-performance advanced DRAM (dynamic random access
memory) technology targeted for potential applications in 2003
and beyond."
The tie-up sparked fears that the six firms could corner the
global market in microchips, the small silicon wafers containing
miniature electronic circuits that form the "brains" of personal
computers and other electronic gadgetry. But analysts said the
move was not aimed at forming a cartel against smaller producers.
They said the alliance would reduce costs in global research and
development and create new standards for one-gigabit and four-
gigabit chips. The alliance will also be beneficial in terms of
pricing to the world's saturated microchip market, which has been
in the painful process of restructuring, they said.
The firms refused to elaborate on details including how much
money would be pumped in the project.
Wave Issue 2003 1/19/00 Article 3-01