Elpida Memory Inc, a computer memory-chip joint venture between NEC Corp and Hitachi Ltd, said the rollout of Windows XP won't create enough demand for personal computers to offset the negative impact of war on consumption in the biggest PC market.
``I have no idea how severely the war situation affects consumers,'' Elpida spokesman Fujio Okada said in an interview.
He declined to disclose earnings estimate for the company.
The US has been striking military facilities of the Taliban regime in Afghanistan since Monday in retaliation for the terrorist attacks on Sept. 11.
US consumer confidence plunged in September to the lowest level in more than 5 and a half years, the Conference Board said.
While Windows XP, Microsoft Corp's new PC operating system due out later this month, would normally prompt demand, bleak sentiment in wartime US will cool the appetite for PCs, analysts said.
``American citizens don't even want to go out in the crowds for shopping,'' said Hiroyasu Nishikawa, an analyst at Cosmo Securities Co, who stopped rating for NEC and Hitachi after last month because of the unpredictable market situation.
The spot price of 128-megabit computer-memory chips plunged to US$1.23, a quarter of the price nine months ago of US$4.67.
Elpida develops and sells DRAM chips, the main memory used in computers.
The venture buys DRAM chips from its parents and resells them to computer makers.
NEC and Hitachi never discussed the sale of their DRAM plants with Elpida, Okada said. Both companies said they will shift all DRAM production to Elpida in two or three years, implying that they will sell their factories to the joint venture.
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