The DRAM market fell into a deep slump starting in October of 2006, but the sector finally rebounded in the second quarter of this year. Overall, the DRAM market is projected to grow a mere 1.97 percent in 2007, according to the research firm.

iSuppli (El Segundo, Calif.) also believes that DRAM prices will begin to decline in September amid an ongoing memory glut. Momentum is waning in the spot market, as rising prices and falling supply of LCD panels cut into the available budget for memory in some PCs, according to the research firm.

Suppliers' efforts to cut production starting in the third quarter will play an important long-term role in strengthening the DRAM market.

Still, iSuppli now foresees the possibility of double-digit sequential price declines in the fourth quarter, erasing any increases that aided suppliers in the third quarter. DRAM suppliers' profitability will dwindle in the fourth quarter, compared to the third, iSuppli predicts.

Global annual bit growth in 2008 will amount to less than 60 percent, compared to the explosive 97 percent bit growth expected in 2007. This will help rebalance supply and demand in the market, according to the firm.

iSuppli's view is different, as compared to that from IC Insights Inc. A feeling of cautious optimism has finally spread throughout the DRAM industry following a downturn in the first half of 2007, according to a recent report from IC Insights.

By: DocMemoy
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