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Memory price hikes fueled by decreased production

The potential for profitability has returned for memory makers as prices have risen over the past five months, according to c|net. The price hikes in memory can be partly attributed to Fujitsu and a series of smaller Taiwanese manufacturers exiting the PC memory market or curtailing production, while other manufacturers are trying to sell excess production facilities. In 2002, the number of memory cells is expected to increase 40 to 45 percent, while demand is expected to grow by 55 percent. An oversupply of chips last year led to dramatic price decreases that significantly hurt many suppliers.

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