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And I think you are about to see a visible round of price increases by the chip producers.
The center of the East German semiconductor industry during Communist times, Saxony aggressively courted chip producers after the fall of the Berlin Wall.
But an older plant like the one in Vermont, analysts say, faces the stiffest competition from the contract chip producers in East Asia like Taiwan Semiconductor and United Microelectronics.
The new plant is part of I.B.M.'s push to gain a strong lead in chip making beyond the personal computer business, where Intel and East Asian chip producers hold the advantage.
Shares in Samsung, the world's largest manufacturer of memory chips, fell 4.9percentto to 183,500 won, but the troubles of Samsung, which relies on semiconductors for half its earnings, were eclipsed by those at Hynix, surpassed this year by Micron for second place among memory chip producers.
Taiwan manufacturers are the world's No. 3 makers of PC hardware and No. 4 chip producers.
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Micron eclipsed Hynix last year as the world's No. 2 memory chip producer after Samsung Electronics; Infineon of Germany is expected to overtake Hynix this year.
Intel, the world's biggest chip producer, saw its share of total sales rise significantly during the third quarter to 87% of the worldwide market, the highest it has been for four years.
Hynix, more than $8 billion in debt, is completing the first round of talks this week with Micron Technology, the second-ranking memory chip producer, for what Hynix executives have said will be a strategic alliance.
Among the losers before the close in New York trading were Taiwanese companies like Taiwan Semiconductor Manufacturing, the world's largest made-to-order computer chip producer, down almost 8percentt, and Chunghwa Telecom, the biggest phone service provider here, down nearly 7percentt.
Plus, China is coming on strong as a chip producer, and its philosophy is to flood the world market with cheap goods.
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