Samsung and Hynix announce increased output capacity and outlook for 2002.

According to a report published in the Korea Times and posted by The Register, both Samsung Electronics and Hynix Semiconductor have announced increased chip output capacity on the order of 50% or higher.

When the market for a product goes down, an increased capacity of the product is on the market, so the producer must cut prices in order to encourage more sales. When the supply is dried up the manufacturer can afford to increase prices and increase supply, thus eliminating the shortage.

This news, combined with the recent recovery in the telecommunications sector (Slow losses instead of massive losses), means that the world economy may be back on the upswing.

Better buy your RAM or iMac now...

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"And knowing is half the battle!"