The medium term outlook for the global dynamic random access memory (DRAM) market is bleak with the industry dogged by oversupply, research agency Gartner Inc said yesterday.
Weak DRAM market conditions are expected to continue into next year, with revenue declining 5 percent as prices fall 37.1 percent, said analyst Andrew Norwood in a Gartner Dataquest report.
Gartner expects an increasing amount of capacity to come on line in late next year, as capacity is ramped up and vendors move to 90-nanometer technology from 110-nanometer node.
This will make the second half of the year particularly difficult for DRAM suppliers due to oversupply conditions, it said.
The market would continue to be struck by oversupply with 2007 showing no signs of improvement which could trigger a full-scale price correction with market revenue declining by 20 percent and prices dropping by 50 percent.
It expects global DRAM revenues this year to come in at US$25.7 billion, a 2.3 percent revenue decline year-on-year.
Major DRAM vendors such as Samsung Electronics Co and Hynix Semiconductor Inc have been converting DRAM capacity to NAND flash during the year, preventing a further, severe, oversupply situation in the DRAM market, it said.
South Korea's Samsung Electronics maintained its dominance of the market, but lost market share as the company focused on NAND flash production. Hynix Semiconductor remained in the number two slot with 16.6 percent market share.
"Hynix and Micron have been battling over second place in the DRAM market for two years now," Norwood said. "But Micron is now attacking Hynix on a second front -- NAND flash."
Norwood also said Taiwanese DRAM vendors were big winners in the third quarter of this year, filling the top three global places for fastest growing vendors.
"Nanya Technology Corp (
Norwood said Taiwanese vendors controlled 15.4 percent of the DRAM market in the third quarter of this year, up from 14 percent in the second quarter.
"But this strong performance is still below the previous record of 17 percent," Norwood said.
PLANNED OUT: The government is lifting sale and export restrictions on 60% of the 20 million masks made daily, but people can still make purchases using their NHI cards Twenty thousand boxes of 50 masks each would be on sale at FamilyMart convenience stores starting tomorrow, Taiwan FamilyMart Co Ltd (全家便利商店) said yesterday. A box of 50 masks would cost NT$249 for those with FamilyMart memberships and NT$299 for those without, with no limits placed on how many boxes a person can buy, the company said. Convenience store chain operator Hi-Life International Co Ltd (萊爾富) said that it would also start selling masks from tomorrow. It has yet to announce details about prices and quantity. Hypermarket chain operator Carrefour Taiwan (家樂福) said that it would start selling packs of five
BOOSTING BUYING: A source said that the idea of pre-ordering vouchers online is being considered, but the preliminary plan is for people to buy them at post offices A stimulus voucher program to be rolled out next month to boost consumption would be available not only to Taiwanese, but also foreign nationals and Chinese spouses who hold residency permits, a source familiar with the matter said yesterday. The government is fine-tuning the details of the program, which involves issuing vouchers for in-store purchases to revive buying amid the COVID-19 pandemic. During a radio interview on Monday last week, National Development Council (NDC) Minister Kung Ming-hsin (龔明鑫) said that the plan is to allow anyone, regardless of age or income level, to buy NT$3,000 (US$99.89) worth of vouchers for
Taiwan High Speed Rail Corp (THSRC, 台灣高鐵) is expected to recover quickly from the effects of COVID-19, as life returns to normal and thanks to the government’s domestic travel incentives, Yuanta Securities Investment Consulting Co (元大投顧) said in a note on Friday. THSRC’s business might have bottomed out after revenue fell 49.83 percent year-on-year to NT$2.03 billion (US$67.59 million) in April, the lowest in nearly 10 years, while combined revenue in the first four months dropped 26.44 percent to NT$11.63 billion, as the COVID-19 outbreak reduced ridership, the investment consultancy said. “The worst should be over in April as domestic tourism
Delta Electronics Inc (台達電), the nation’s leading power management solutions provider, has signed an agreement to acquire Canadian software firm Trihedral Engineering Ltd to bolster its smart production efforts, it said on Saturday. Delta said in a statement that it would acquire Trihedral for C$45 million (US$32.68 million) through its 100 percent-owned subsidiary Delta Electronics (Netherlands) BV. Trihedral specializes in supervisory control and data acquisition (SCADA) and industrial Internet of Things software, which would strengthen Delta’s hardware offerings in fast-growing areas such as automation, artificial intelligence and data analytics, it said. “The collection, monitoring and analyzing of data are critical to Delta’s two