TRADE BRIEFS

TRADE BRIEFS

IBM IN 50-50 VENTURE

WITH JAPAN'S TOSHIBA

TOKYO - International Business Machines Corp. and Toshiba Corp. will invest more than $1.2 billion to build a plant to make next-generation memory chips in Manassas, Va., the Japanese electronics company said Tuesday.

The factory is expected to begin producing 64-megabit dynamic random- access memory (DRAM) chips in the fourth quarter of 1997.

Toshiba said the 50-50 venture would help it stay globally competitive despite the yen's appreciation against the U.S. dollar, and satisfy soaring demand for memory chips.

Global demand for DRAMs, used in computers and a wide range of information equipment, is likely to climb, to $39 billion in 1996 from $23 billion this year, Toshiba said.

The venture will be Toshiba's first overseas production base for silicon wafer fabrication, the core process of semiconductor manufacturing.

JAPAN'S CABINET MOVES

TO REPAIR ECONOMY

TOKYO - The reshuffled Cabinet of Prime Minister Tomiichi Murayama will seek to achieve an early economic recovery as its top priority issue, government officials said Tuesday, according to Kyodo News Service.

To demonstrate its resolve to put an end to Japan's prolonged economic downturn, the new Murayama cabinet has appointed a noted private economist as its chief economic planner, they said.

With Isamu Miyazaki, head of the Daiwa Institute of Research, serving as director general of the Economic Planning Agency, the Cabinet plans to work out an additional pump-priming measures in September, the officials said.

The third package for fiscal 1995 will include public works spending worth 1 trillion yen ($11.3 billion) to 2 trillion yen ($22.2 billion), the officials said.