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DRAM Production Cuts Take Effect, Likely to Lead to a Rebound for DRAM Prices DRAM Production Cuts Take Effect, Likely to Lead to a Rebound for DRAM Prices
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DRAM Production Cuts Take Effect, Likely to Lead to a Rebound for DRAM Prices
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Old 30th October 2012, 07:21   #1
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Default DRAM Production Cuts Take Effect, Likely to Lead to a Rebound for DRAM Prices

According to DRAMeXchange, a research division of TrendForce, given the persistent oversupply situation in the global DRAM market, along with the -5% YoY shipment growth for PCs, October contract prices have dropped below $16 USD, and are continuing to approach the $15 USD mark. The trends pose as yet another test to the cost structures of DRAM makers. With prices approaching or dropping below cash cost, manufacturers are faced with the option of either undergoing production cuts or shifting their focus towards non-DRAM products.

Other than ProMOS, which chose to quit the DRAM market due to financial woes, manufacturers like Elpida and Rexchip have taken the initiative to lower their output levels in August. Powerchip, beginning September, took a similar initiative by adjusting P3 wafer levels, whereas in the following month, Nanya and Inotera made the official announcement to implement 20% production cuts. For the South Korean DRAM manufacturers, whose cost structures appear to be superior to those of other competitors, no production cuts have been announced nor taken, although efforts to control output ratios have been intensified. At the same time that production of commodity DRAM is being lowered, an increasing amount of emphasis is being placed on the production of the more profitable mobile and server DRAMs.

http://www.techpowerup.com/174677/DR...AM-Prices.html
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