"It's a cyclical play on semiconductor prices," he said.

The Toshiba Corporation of Japan said yesterday that profit fell 39 percent in the first half of its fiscal year because of low semiconductor prices.

Sony, which has diversified into movies, music, games and financial services, has been trying to make itself less dependent on electronics and less vulnerable to swings in semiconductor prices.

Toshiba's eagerness to sell its operations or find a foreign partner underlined its dire economic condition in a period of plummeting semiconductor prices.

The contracts, which will attempt to harness the volatility of semiconductor prices for futures traders, would be among the first derived from neither agricultural products nor financial instruments.

"We would certainly emphasize the 'or less' today, especially with the weakness of the yen and other currencies and very depressed semiconductor prices."

The slump in semiconductor prices accounted for most of the decline, with exports totaling $970 million, down 63 percent from a year ago.

When his reform bandwagon stalled, stocks resumed their decline, propelled by mounting banking problems, falling semiconductor prices and the events of Sept. 11.

That was largely a result of the rapid decline in semiconductor prices and the large capital investments the company has made in semiconductor plant and equipment.

Toshiba and NEC each posted record losses in the fiscal year ended March 31, as semiconductor prices slumped and demand for electronics collapsed.