One of these days is none of these days - English proverb
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There's too much DRAM out there
THERE'S MORE THAN ENOUGH DRAM production in the world and manufacturers should not look at building any more capacity until 2012, according to the bean counters at Isuppli.
The IT industry analyst firm says that after engaging in a massive capital spending program during the middle of the decade, the worldwide DRAM industry now has sufficient manufacturing capacity to last through 2012.
Building more capacity is about as sensible as a Monster Raving Loony party manifesto and the money would be better off being spent on having really good Christmas parties [I think you are paraphrasing here. Ed] for the next few years.
Mike Howard, senior DRAM analyst for Isuppli said that DRAM makers spent $50 billion on new chipmaking gear and fabs from 2005 to 2007, equaling 55 per cent of total industry revenues.
This was an unprecedented boom in capital spending leading to a 125 per cent increase in wafer capacity and a 349 per cent increase in bit output. This in turn has led to a painful oversupply situation that caused prices to drop.
It has proven really dumb, according to Isuppli, because since early 2007, DRAM companies have made a combined operating loss of nearly $16 billion.
An Isuppli representative said that current wafer capacity will be able to meet demand until 2012 or 2013, depending on how quickly DRAM makers transition to more advanced lithographies.
This is of course assuming that the world does not end in 2012 or that we do not transform our consciousness to another level that does not require DRAM any longer. µ
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They are limited to 20 "self-consistent" databases, with which to form a single "self-consistent datascape" that tracks industry performance. ("The only splits I'm interested in are the ones with bananas in them".)
Tasseography, on the other hand, is not limited by the teabaggers keeping score.
As long as we have abandoned mine shaft space-available, I say the more mellifluous muezzins, the merrier.
ISuppli is mistaken (par for the course though). Inventory is already low, and it seems no DRAM manufacturers are planning on ramping up production as they are currently enjoying the high prices while they sell off their inventory. Sadly, I predict that those treating DRAM like a commodity will only hold back technological progress and end up shooting themselves in the foot (again- see 2003 and 2006- notice each time there was a shortage, memory makers lost billions afterwards).
Keep in mind that memory demand was held back by 32-bit XP stagnating these past few years. With more consumers adopting 64-bit OSes, and thus able to use larger capacities, memory will be in much higher demand than they were previously.
"This is of course assuming that the world does not end in 2012 or that we do not transform our consciousness to another level that does not require DRAM any longer."
LOL