Slow season effects in the third quarter of this year are expected to add pressure on memory chip-makers and prompt them to cut production in a bid to absorb the impact of falling product prices, a research report said on Wednesday.
In the report, DRAMeXchange, a research division of Taiwan-based market information advisory firm TrendForce (集邦科技), said due to a supply glut, DRAM chip prices are expected to continue to fall this month after a decline of more than 7 percent last month.
DRAMeXchange said the current market downcycle is likely to force DRAM firms to cut production.
According to DRAMeXchange, the benchmark DDR3 2-gigabit DRAM chip price for last month’s delivery fell US$0.09 or 7.69 percent from June to US$1.08.
The research unit said that in advance of the launch of Microsoft’s Windows 8 operating system, set for the fourth quarter, slowing demand for high-tech devices, in particular PCs, is expected to keep negatively impacting the DRAM business and eroding the sector’s pricing power for the third quarter.
It said even if DRAM makers adopt advanced 40-nanometer technology process in a bid to cut back costs, weakening pricing power is expected to plunge them into red.
It added that production cuts, which will lower operating costs, have become the only way DRAM makers can survive as falling product prices keep squeezing their profitability at a time when the global memorychip business has failed to find a balance between supply and demand.
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
RECORD-BREAKING: TSMC’s net profit last quarter beat market expectations by expanding 8.9% and it was the best first-quarter profit in the chipmaker’s history Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which counts Nvidia Corp as a key customer, yesterday said that artificial intelligence (AI) server chip revenue is set to more than double this year from last year amid rising demand. The chipmaker expects the growth momentum to continue in the next five years with an annual compound growth rate of 50 percent, TSMC chief executive officer C.C. Wei (魏哲家) told investors yesterday. By 2028, AI chips’ contribution to revenue would climb to about 20 percent from a percentage in the low teens, Wei said. “Almost all the AI innovators are working with TSMC to address the