DDR DRAMs in short supply players concerned

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DDR DRAMs in short supply, players concerned

This could leave OEMs in trouble as they will have to scramble for their supply of DRAMs

Friday, October 16, 2009

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SEOUL, SOUTH KOREA: South Korea's memory manufacturers are skeptical about the DRAM scene and they fear that DDR-based SDRAMs will remain in short supply at least until the first quarter of year 2010. This could, in turn, leave OEMs in trouble as they will have to scramble for their supply of DRAMs.

In such a scenario, and anticipating harder times, semiconductor majors of the likes of Elpida Memory, Hynix Semiconductor, Micron Technology and Samsung Electronics are fast sprucing up production of DDR3 devices.

However, many of them are wary that their capacity may not be enough if they are to tread the fast lane. It has been a clutch of bad seasons for quite a while now for the DRAM scenario owing to cut down in spending, losses and a slowdown in the memory market place.

The accelerated demand for high-end notebooks, servers and other products had also led to shortage of select DRAMs, especially next-generation DDR3 parts. Lack of adequate DDR3 had also led to a buying spree for older DDR2 parts. This had in a way led to shortage for those devices.

Samsung, who along with Hynix, is a prominent player in the DDR3 space with a 45 percent share of the market, now expects third quarter sales of approximately 36 trillion won ($30.8 billion) and an operating profit of roughly 4.1 trillion won ($3.5 billion). The company believes that has out in a sensitive point in terms of market demand.

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