Memory oversupply spurs fears of Dramurai losses

A GLUT OF dynamic random access memory (DRAM) is likely to cause major manufacturers to file losses as prices continue to slump.

Last week it was reported that Samsung, the biggest maker of the memory chips, had declined to supply DRAM to large PC firms because of the continuing price drops.

But now, according to the Taipei Times, there's a 15 per cent oversupply of DRAM and that is likely to affect the memory manufacturers' bottom line.

DRAM Exchange held a conference during the Computex show in Taiwan, and pointed out there was an inexorable move to 12-inch wafer and smaller process technology which won't help.

Samsung could move some of its production to NAND flash memory but so far has showed reluctance to do that. The report said that a widespread anticipation that the introduction of Microsoft Vista would help sales of DRAM has so far failed to give the Dramurai any significant boost. µ

L'INQ
Taipei Times