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The Major Manufacturers Slow Down DRAM Production Levels

Due To Poor Sales Figures

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13th of July 2005, 10:09 GMT

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Each year, the second calendar quarter is a very slow one for all types of businesses, and the same can be said about the DRAM manufacturers. However, they seem to be ready to apply some crisis measures in order to minimize their losses.

Thus, according to The Inquirer,
the Korean giants Samsung and Hynix have shifted a lot of their production from DRAM to NAND flash memory modules, in order to avoid the stockpiling of DRAM chips, whose sales level is not a particularly encouraging one right now.

According to the market analyst Nam Hyung Kim, it looks like the prices for the 256Mb DDR will decline with at least $2, because the production costs allow this discount. Meanwhile, the situation of DDR2 modules is not a very good one either, because the sales haven't increased lately, despite the fact that they now cost the same as DDR for OEMs buying quantities.

The DDR2 modules currently represent only 17.2 percent of the worldwide sales, but it looks like the DDR2 penetration in the OEM market will rise to 49 per cent by the fourth quarter of this year, according to analyst Kim.
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