2013年7月13日星期六

Business Memory industry set to change

Business Memory industry set to change

2013/07/05

Memory looks like being the place to be in the chip industry.

As DRAM consolidates around Samsung, Micron/Elpida and Hynix, and Flash consolidates around Samsung, Toshiba and Hynix, it is clear that the game has changed.

Until now, it was in the interest of the large players to over-supply the market which kept prices low, so impoverishing the weaker players and eventually forcing them out of business.

Now it’s in the interest of the major players to under-supply the market to keep prices high and force the end product manufacturers to give more of the systems industry’s value-added to the memory suppliers.

A sign of the new memory age is that overall memory capex is set to fall by 2.6% to $12.3 billion this year, according to HMC Investment Services.

Ever since the Japanese bombed the DRAM market with massive over-supply in 1984/5 when all the US producers except TI and Micron pulled out of the DRAM business, memory has been a problematic place to be.

Now that’s going to change.


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