View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
September 22, 1998


By CBR Staff Writer

Matsushita Electronics Corp and Oki Electric Industry have disclosed more bad news related to the slump in the world market for memory chips. Matsushita has decided to postpone the start-up of operation at two semiconductor plants, according to The Nihon Keizai Shimbun. The company also plans to cut annual capital spending from 100 ($738m) billion yen to 60 billion for the next four years. Matsushita will hold off on the production of 32-bit microcontrollers and 64Mb DRAMs at one plant until next year and will also postpone construction of a plant for 0.18 micron chip production until 2000. This news follows the company’s recent decision to close down chip-making operations at its US subsidiary (CI No 3,492). Meanwhile, Oki says memory price declines will lead to a loss for the current fiscal year of 43bn yen ($317m) – the largest it’s ever reported – on disappointing sales of 735bn yen ($5.42bn). An earlier projection by the company had called for a profit of in the neighborhood of 1bn yen. The lion’s share of the loss, roughly 35bn yen, is directly attributable to the ailing DRAM business. Oki has also announced a restructuring plan that will see the company cut 1,500 staff by March 2001, including 500 job cuts in the chip-making operations by March 2000. A further 1,200 will go at affiliated companies over that span of time and Oki says it plans to accomplish the bulk of the cuts through attrition. The company will also shift its focus away from DRAMs to concentrate on higher-margin multi- function chips and cut capital spending in chip operations by about 20% next year. Figures converted at 135.5 yen to the dollar.

Content from our partners
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester
Infosecurity Europe 2024: Rethink the power of infosecurity

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.