Memory market bounces before it slows

WORLDWIDE REVENUE of memory chips looks like it's grown 21.5 per cent in 2006, worth $60.4 billion, according to a report from the Gartner Group.

But in 2007 the picture will not be so rosy, with the market only growing by 9.8 per cent, to be worth $66.3 billion.

Condition s for DRAM improved this year as manufacturers controlled supplies and kept the lid on prices, according to Richard Gordon, Gartner principal analyst.

But NAND flash declined because competition has increased, and revenue growth in this slab is "modest at best".

Because of that, the memory manufacturers, the so called "Dramurai", are likely to convert NAND production back to DRAMs next year, Gartner thinks.

DRAM accounts for some $33.9 billion in this year, and will grow 15 per cent next year, but will peak in 2008.

Andrew Norwood, research VP at Gartner, said the DRAM market is the most volatile sector of the semiconductor industry. The manufacturers will have to switch capacities beween DRAM and NAND. µ

L'INQ
Gartner