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Motorola DRAM Just A Memory

****Motorola DRAM Just A Memory 07/01/97 AUSTIN, TEXAS, U.S.A., 1997 JUL 1 (NB) -- By Bob Woods. Motorola's [NYSE:MOT] Semiconductor Products Sector (SPS) group said it will phase out its dynamic random access memory (DRAM) efforts to concentrate on other memory technologies. Company officials also said Motorola will take a pre-tax charge of an estimated $170 million to write down both equipment and technology costs in the second quarter associated with its DRAM exit.

Motorola SPS's penetration into the DRAM market was never a significant one, Motorola SPS spokesperson Ken Phillips told Newsbytes. The company purposely kept its participation at a maximum of five percent in previous years, and at less than two percent in the last three years.

Motorola was only in the DRAM market in the first place primarily as a "service to our customers," Phillips said, and that DRAM was never a big part of Motorola's business. The company's DRAM products were primarily made in joint venture partnerships with Toshiba and Siemens. Those partnerships would not be impacted by Tuesday's decision, officials said, and employment rolls are also not expected to be affected.

The action was taken as a result of a business review ordered by Motorola Chief Executive Officer Christopher B. Galvin during the company's first quarter. Phillips said Motorola would either be a "leader in memory, or develop other types of memory."

And that's exactly what Motorola SPS intends to do, company officials said. Motorola's DRAM resources are being reallocated to other technologies including proprietary fast static random access memory (FSRAM) and integrated memory products like flash memory and electrically erasable programmable read-only memory (EEPROM).

In unrelated computer memory news, three large manufacturers of memory based in South Korea said they will temporarily stop production of their products for up to a week this summer, in an apparent move to strengthen chip prices worldwide, the Associated Press reported. Samsung Electronics will shut down from July 26 through August 1, while Hyundai Electronics and LG Semicon said they will bring their lines to a halt early next month.

(19970701/Press Contact: Ken Phillips, Motorola, 602-952-3637/Reported By Newsbytes News Network: /MOTOROLALOGO/PHOTO)



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