Tablet and Smart Phone May Ease Recession of DRAM Market

It was said that DRAM market was highly competitive in 2009 and many firms confronted with revenue reduction. The year of 2010 used to be expected to be prosperous but in fact, it was more competitive in the market. The sustained price erosion for five months even drove a few manufacturers to turn to SSD.

According to the statistics by DRAMeXchange that the average deal price of DDR3 which is major product of DRAM was 1.81 dollars in early October while in late month, the price had reduced to 1.97 dollars with reduction of 7.92 percent. On the other hand, the price of DDR3 was 2.72 dollars in late May of 2010 which reached a record-high. After that, it remained price reduction for five months and slipped below 2 dollars till late September.

In the first half year of 2010, the price of DRAM was in the trend of increasing while since the third quarter, it started to slip down resulted from softening demand for PC. As a result, the semiconductor revenue of Samsung and Hynix was not optimistic in the fourth quarter of 2010.

Except some leading firms, many Taiwan enterprises also had a rough time because of backward techniques and bad cost control so that faced great pressure.

By contrast, 2011 seems an optimistic year for DRAM market. According to the analyses by Nomura, share price of some leading semiconductor enterprises is expected to be of resurgence. He also added that firms whose DRAM and NAND Flash occupy higher proportion will be much different than others.

We can find that despite the growth of desk-top and laptop slows down, mobile and handheld devices is still increasing such as Apple’s iPad and iPhone. Wide adoption of DRAM and NAND flash memory in mobile devices makes contribution to market development. The related integrated circuit is TXS0206.