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DRAM market seen headed for recession

Posted: 04 Aug 2004 ?? ?Print Version ?Bookmark and Share


The booming DRAM market is expected to head toward recession next year, a market research firm said Thursday (July 29, 2004).

Worldwide DRAM revenue in the second quarter reached its highest level in four years with a 19.8 percent increase over the first quarter to $6.7 billion, Gartner Inc. said. The good times, however, are expected to come to an end as DRAM vendors open new production facilities in late 2005 through 2006, triggering an oversupply that's expected to drive down prices.

"We are entering the height of the DRAM boom, and the industry will be heading into a recession during 2005," Gartner analyst Andrew Norwood said in a statement. "All of the DRAM vendors will need a survival strategy to remain competitive."

Among the vendors, Hynix Semiconductor moved into the No. 2 spot for the first time since it was created in 1999 through the merger of Hyundai Electronics and LG Semicon, Gartner said.

Samsung Electronics held on to the No. 1 spot with a 29.7 percent market share, followed by Hynix, 17.1 percent; Micron Technologies, 15.3 percent; Infineon Technologies, 14.1 percent; and Elpida Memory, 5.4 percent.


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