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"Bullish on the DRAM Market"

13 January 1999

"Bullish on the DRAM Market"

    PHOENIX--Jan. 12, 1999--After three very lean years Semico believes that a turnaround in the DRAM market has begun.
    In a third quarter market analysis report, published in August 1998, Semico predicted that DRAM ASPs would stabilize, and that has happened. Semico believes that DRAM ASPs will continue to rise, leading to a turnaround in the market. Semico Research Corp. announced today the availability of a DRAM market analysis report, "Bullish on the DRAM Market" containing detailed forecasts for the turnaround.
    The DRAM market has split in two. One segment is DRAM sold into the PC market. DRAM in this segment are going to require fabs that are .22 micron or better. Semico believes that there is a shortage of capacity in these fabs that will get worse as 1999 progresses. DRAM manufacturers have not invested in these advanced fabs since 1995.
    DRAM manufacturers are rightly very cautious about the introduction of a new type of DRAM, Direct RAMBUS DRAM (DRDRAM). They are unlikely to significantly increase capacity until the direct access technology battle has been decided. A shortage of capacity is going to lead to increased ASPs.
    The second DRAM market segment is DRAM sold into workstations and into the communication, consumer, transportation and industrial markets. These are older types and densities of DRAM. There is not a shortage of capacity for these DRAM, but ASPs will rise as DRAM manufacturers shift their emphasis to the much larger volume PC market.
    "Bullish on the DRAM Market" is available for immediate shipment. The list price is $3,500. Other products and services are available at the Semico Research Corp. Web site www.SEMICO.COM.
    Semico Research Corp. is a leader in providing semiconductor market analysis, research and custom consulting. Its headquarters are in Phoenix, with offices in northern California and Boston as well as in Europe and in Japan.