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A report says the current crisis is a good time to invest in semiconductor companies. Market researcher iSuppli published a report asserting that restructuring within the semiconductor industry such as mergers and acquisitions and a cut in production of DRAM chips will be accelerated due to the global economic slowdown. ¡°Considering the cycle of the semiconductor industry, the industry will see prosperity in 2010 and will earn current investors a fortune,¡± the report said. It came out after the global semiconductor industry saw two years of recession.
iSuppli bases its claims on the fact that the total market price of major DRAM companies like Samsung Electronics, Hynix Semiconductor and Micron rose four- to eightfold in 2000 after a slump in 1997. iSuppli believes the industry will see another cycle of prosperity as the current restructuring programs at DRAM makers are similar to what happened during the previous recession.
The slump in DRAM production is prompting various restructuring schemes. Micron acquired a DRAM semiconductor maker from Germany¡¯s Qimonda recently and began to cut down on production. Hynix and some Taiwanese chipmakers closed production lines of less profitable chips. ¡°That rigorous restructuring will lead to prosperity in the sector within one or two years,¡± iSuppli predicts.
(englishnews@chosun.com )
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