Micron believes DRAM prices have bottomed out

MEMORY MAKER Micron believes DRAM prices have finally bottomed out after a prolonged recession in memory prices.

Micron is one of the largest DRAM manufacturers and, like its rivals, has been forced to endure the long and painful DRAM price slump. Now the firm's president Mark Adams told analysts, "I don't think DRAM goes down from here... it's starting to feel like a stable market."

After Adams made the rare promising statement about the DRAM market he was quizzed on rumours of Micron's involvement to invest in Japanese memory giant Elpida. Adams did not comment specifically but did say the firm was looking at opportunities, suggesting that it isn't averse to making investments.

Only Samsung has come out of the DRAM slump smelling of roses, with Elpida, Hynix and Micron all reporting losses as economic conditions led to declines in demand for DRAM and DRAM prices. If Adams is right and prices are starting to stabilise, then Micron could use the cash it has to consolidate the market.

Firms in the chip industry look towards consolidation as a way of competing against the big firms. Samsung's huge resources mean it can afford to open new factories and ramp up production, so if Micron believes prices are stabilising, then by mopping up an equally hard-up DRAM vendor, it could find itself in a good position when the market finally picks up. µ