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Samsung Electronics Co Ltd. (Seoul, South Korea), the world's top memory chip maker, says that it expects a shortage of the chips throughout 2004, with inventories at low levels and supply constrained.
Samsung, which is also the world's third-largest mobile phone producer, said it expects to sell more handsets in the second quarter after shipping a record 20.1 million in the first quarter, which it says is driven by U.S. and Asian demand.
Smaller handset rival LG Electronics Inc. also offered an upbeat outlook, saying it predicted its cellular phone profit margins would improve in the second quarter, helped by a rise in shipments and sales of high-end handsets such as third-generation models.
Prices of dynamic random access memory (DRAM) chips, used mainly for computer memory, have soared since the start of the year on tight supply as chip makers switch to making flash memory and hit problems introducing new production technology. (Reuters)
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