Word: drams
(lookup in dictionary)
(lookup stats)
Dates: during 2000-2009
Sort By: most recent first
(reverse)
...These days, the DRAM business has entered into another destructive phase of the business cycle. Huge investments in new capacity in 2007 have created an oversupply of chips, while the global economic slowdown is drastically weakening demand for the slivers of silicon that go into computers, mobile phones, portable music players and a host of other consumer electronics products. The result has been plummeting prices. According to a price index compiled by research firm iSuppli, DRAM prices have plunged 48% in the past six months. That is good news for consumers - cheaper DRAMs mean electronics makers can pack more memory...
...crisis has already claimed one major victim. In late January, Germany's Qimonda, the world's fifth-largest DRAM maker, filed for bankruptcy. Several other chipmakers have sought emergency aid. In late December, the creditors of South Korea's Hynix, the world's second-biggest DRAM maker, agreed to provide $600 million of aid to the company, including new loans, as its losses mounted...
...worst-off of all the beleaguered chipmakers are the six major DRAM manufacturers in Taiwan, which lost a combined $3.5 billion in 2008, according to the Taiwan government. Taiwan's firms are in especially rough shape because they lack the scale, financial resources and technical prowess of their larger Korean and American rivals. The companies' woes are pushing the Taiwan government toward a bailout of the industry. "We have the intention and the resolve to help the DRAM companies through difficult times," Taiwan President Ma Ying-jeou reportedly told electronics industry executives in early January. Aid is crucial, policymakers believe...
...told they must revise their proposals with more measures aimed at improving their competitiveness and technological capabilities. "The government sees this [aid] as an investment," Lu says, "We don't want to just bail out the industry." The result will likely be consolidation of the country's six major DRAM makers into fewer firms, including possible sales of stakes or entire companies to better capitalized foreign rivals. "It looks like merging is the direction of the industry," says Cecilia Shih, a manager at the Taiwan Semiconductor Industry Association...
...pressure on DRAM makers won't significantly ease up anytime soon. Though prices may stabilize in the short term, iSuppli's Kim doesn't expect a meaningful recovery until the second half of 2009. That turnaround will likely be driven by a sharp reduction in new capacity. Kim expects investment in chip-making facilities to fall 63% in 2009 as cash-strapped manufacturers finally scale back. Until then, however, DRAM makers will be lucky to survive - at least until the next downturn...