HSINCHU, Taiwan -- Amid an apparent softening in the DRAM market, Taiwan's Mosel Vitelic Inc. late last week lowered its profits and sales forecasts by as much as 55% for 2000.
Mosel Vitelic, a provider of DRAMs, flash memories, LCD driver ICs, and foundry services, originally hoped to report a profit of $351.1 million on sales of $1.08 billion for 2000.
Now, the Taiwanese chip company has changed its forecast, saying it will report a profit of $157.9 million on sales of $847.1 million for the year.
The company blamed the new forecast due to the slow growth in the PC and related industries, causing DRAM prices to drop at unexpected levels. It also attributed the problems to a "slump in the stock market and lack of momentum in the financial markets," the company added.
The announcement follows an overall weakness in the DRAM sector. In fact, mainstream synchronous DRAM prices continue to free fall, with workhorse memory chips hitting their lowest prices ever. (see Nov. 8 story).