Falling Demand for DRAM Affects Chip Companies
- January 7, 2012
January 7, 2011- The WSJ reports that in 2011, DRAM revenue fell more than 30% as supply outweighed demand. The WSJ article also says analysts are predicting that NAND flash revenue will exceed DRAM for the first time in 2012. Samsung’s share of the DRAM market reportedly grew to 45% in 2011, firmly in first place among producers. (Hynix is in second place and Micron and Elpida trail for third.) According to the article, Samsung and Hynix are the only companies that generate more than $5B in annual sales from DRAM. The WSJ says Samsung is, “scrambling to diversify into logic chips” and is expended to make more capital investments in them than in memory going forward. Others, like Micron, reportedly continue their commitment to produce DRAM despite losing money in the segment.