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DRAMeXchange wants Korean DRAM manufacturers to cut production
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As expected the recent production cuts announced by Elpida and Powerchip Semiconductor (PSC), will only see global DRAM output reduced by no more than 2.5 percent, having little impact on the current oversupply conditions.
DRAMeXchange has said that the Korean producers, Hynix and Samsung need to cut production by 10 percent or more to have an affect on the market as there combined market share is close to 50 percent.
DRAMeXchange said that ‘Since DRAM makers have been bleeding in red for seven straight quarters from 2Q07, they are teetering on the brink of eroding operation fund, rising debt ratio and more difficulties on fund raising (probably last through 2009). Output trim, thus, being the only way to resume the industry to normality.
indicates major players need to trim output to ensure market stability’
The fall in DRAM prices has pushed DRAM content in PC’s to 2GB, yet has had no affect on the supply/demand situation.