DRAMeXchange: Worldwide DRAM production boost due in 2004

Posted on 23 Jan 2004 at 11:15

Worldwide DRAM production capacity will increase by 15.6 per cent in 2004 according to the DRAMeXchange. The surge in growth will occur as manufacturers move from 8 inch wafers to 12 inch wafers and migrate to 11um processes.

The DRAMeXchange which monitors both spot and contract prices estimates that while 8 inch capacity will only grow 3.27 per cent, 12 inch capacity wll almost double at 97.6 per cent. Migration to 11um fabs is also well advanced with Samsung announcing that all its DRAM products will be on this process from Q1 this year with the others like Micron not far behind.

With the increasing worldwide popularity for battery powered devices from iPods, to mobile phones to digital cameras, Flash memory is becoming more and more in demand. In response DRAM manufacturers are diversifying much of their production towards meeting the the demand for Flash. For example, Samsung has earmarked 25 per cent of its new 12in capacity towards Nand flash production in 1Q 2004 up from 20 per cent in the previous quarter.

Once again, other manufacturers like Infineon, Hynix and Powerchip are also switching some of their capacity over to Flash. This strategy not only allows the companies to cash in on the the booming market for Flash but also protects them from the notorious volatility (!) of the DRAM business.

Author: Steve Malone

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