Report: Hynix ramping >1Gb DRAM after spot supply cutoff

September 28, 2007 – Hynix plans to hike output of >1Gb DRAM to 60% of its total DRAMs by year’s end, after ceasing DRAM chip sales in spot markets in an effort to step still-falling prices.

The Korean chipmaker currently supplies about 15% of DRAM production to the spot market, but now wants to focus on more profitable chips, according to a spokesperson cited by the Korea Times. “To meet soaring demand from contracted clients seeking high-capacity chips, we recently revised up the portion of over 1Gb chips from the current 10%,’ noted the spokesperson. Hynix accounts for about 20% of total DRAM sales worldwide.

Market leader Samsung, however, has no plans to shut off the spigot to the DRAM spot market, the paper noted, citing that firm’s spokesperson. Samsung plans to have ~40% of its DRAMs be >1Gb by year’s end.

DRAMeXchange notes that spot prices of many DRAM chip types have quickly eroded again over the past two weeks, falling by >10% in some cases, and expects contract prices to be down 10% for September as well.


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