Elpida COO predicts DRAM shortage in second half of 2007

Citation

(2007), "Elpida COO predicts DRAM shortage in second half of 2007", Microelectronics International, Vol. 24 No. 3. https://doi.org/10.1108/mi.2007.21824cab.002

Elpida COO predicts DRAM shortage in second half of 2007

Elpida COO predicts DRAM shortage in second half of 2007

Elpida Memory's Chief Operating Officer (COO) Shuichi Otsuka said that the DRAM market will see a serious shortage in the second half of 2007, as demand will grow much faster than supply. He noted that not all DRAM makers are seeing smooth migration to 70nm processes, as 8in. fabs are not suitable for 70nm production, which will greatly limit growth in DRAM supply.

Elpida also thinks that the current inventory levels at PC OEMs and DRAM makers are not as high as it is generally thought, and the company is not worried about inventory issues, Otsuka said. But, growth in demand will be strong across all market segments, he added. The COO, pointing out that DRAM prices already hit bottom in mid-May, cited Dataquest and other research firms as indicating before that DRAM bit growth for 2007 would reach about 60 per cent. Their latest predictions have already adjusted the bit growth to about 80 per cent, he said.

He noted that in the PC segment, the DRAM modules capacity for each PC will reach an average 1.3GB in the fourth quarter, up from the present 1GB, and sales from PC-use DRAM will grow 50 per cent in the second half compared to the first half.

Otsuka also predicts strong growth in DRAM for mobile communications and digital cameras. He estimates that worldwide handset shipments will reach 1.1 billion units in 2007. He said Elpida will see a 35-40 per cent bit growth for DRAM in the second half of 2007, compared to the first half.

Elpida expects its 70nm production to account for 70 per cent of its capacity by the end of the year, he said, adding Elpida's current monthly capacity totals 80,000 wafers.