Micron slams DrKB chip report

Micron Technology, one of the few remaining mass manufacturers of memory chips in the US, has lashed out at an analyst report issued by Dresdner Kleinworth Benson (DrKB) in Japan.

The Far East arm of the investment bank claims there is a major design defect in Micron's 64Mbit SDRAM chip.

The report goes on to say PC manufacturers such as Compaq and Hewlett-Packard have cancelled orders, and that Micron will have to stop production and redesign the product - both claims Micron rejects.

Kobe Steel - which partners with Micron in KMT Semiconductor - has lodged a report with Japan's Securities and Exchange Surveillance Commission.

Idaho-based Micron said it is reviewing its legal options.

Micron Technology has been at loggerheads with Far Eastern semiconductor manufacturers for some time - a situation that makes the DrKB document even more sensitive.

Steve Appleton, Micron CEO and president, has repeatedly accused rivals - particularly those from South Korea - of having their businesses propped up by government aid, only for them to then dump cheap products on the already depressed world market.

"The misinformation contained in the Dresdner Kleinworth Benson report is so inflammatory and rumours have persisted for so long that the company felt it was appropriate to respond," said Appleton in a prepared statement.

DrKB declined to comment on the report.