Online information source for semiconductor professionals

DRAMeXchange expects second tier DRAM producers to cut capacity

22 September 2008 | By Mark Osborne | News > Fab Management

Popular articles

New Product: Applied Materials new EUV reticle etch system provides nanometer-level accuracy - 19 September 2011

Oberai discusses Magma’s move into solar PV yield management space - 29 August 2008

‚??Velocity‚?? the new buzzword in Intel‚??s PQS annual awards - 12 April 2012

Applied Materials adds Jim Rogers to Board of Directors - 29 April 2008

New Product: ASML Brion‚??s Tachyon MB-SRAF enables OPC-like compute times - 19 September 2011

DRAMAs the price of DRAM sits below the variable manufacturing cost of between $1.30-1.50, DRAMeXchange believes that second tier DRAM producers faced with weakening cost structures should start to cut production. Recently, top tier suppliers Elpida, PSC and Hynix announced DRAM production cuts, which reduced total global DRAM production by approximately 5 to 6 percent, according to DRAMeXchange.

Should second tier suppliers follow DRAMeXchange’s advice, then global production could fall by as much as 6 to 8 percent in total. DRAM spot price has dropped by approximately 20 percent since the end of the Beijing Olympics, DRAMeXchange noted.

DRAMeXchange said that DRAM makers can no longer rely on the bit growth in projecting their output. Instead, they must focus on the sales revenue and return on assets as their primary targets. The vast majority of DRAM manufacturers have recorded losses for 7 quarters in a row, marking one of the worst periods in history for the sector.

DRAMeXchange DRAM production cuts

Source: DRAMeXchange (Sept-08)

Related articles

DRAM node migrations to fail in profitability goals, says DRAMeXchange - 29 October 2008

DRAM capacity cuts greater than claimed, says DRAMeXchange - 13 January 2009

DRAMeXchange projects DRAM capex to fall 47% in 2009 - 06 January 2009

Global DRAM revenue climbed 27.1% in 2Q09, says DRAMeXchange - 04 August 2009

DRAMeXchange wants Korean DRAM manufacturers to cut production - 17 September 2008

Reader comments

No comments yet!

Post your comment

Please enter the word you see in the image below: