Chip demand up in ’05: Samsung

Samsung Electronics Co., the world’s second-largest semiconductor maker, forecast global demand for computer memory chips would rise 44 percent next year, driven by personal computers and handsets. Prices for dynamic random access memory, or DRAM, chips, the main chips used in computers, will fall a “modest” 30 percent because Samsung may delay raising production capacity, according to material presented by the company at a conference in Seoul. Fourth-quarter demand is “solid,” Samsung said, reiterating comments made in November. Samsung’s forecast for the price decline of the chip, the main type of memory in computers, is less than the 41 percent drop forecast by Deutsche Bank AG, which lowered its recommendation on Samsung today to “sell” from “hold.” Lower prices will drive global DRAM sales to shrink 15 percent to $23 billion next year, the Semiconductor Industry Association said last month. Shipments of liquid crystal displays measuring more than 10 inches diagonally may climb 30 percent next year, and demand may increase 28 percent, Samsung, the world’s largest LCD maker, said in material presented at a conference. Samsung said it doesn’t expect any “major” changes in production plans for its newest LCD plant after defective equipment led LG.Philips LCD Co. to say it may postpone production plans. Samsung said in October it planned to begin production in February.