Hynix Semiconductor said Taiwan DRAM makers should bear the responsibility for the recent rock bottom price of DRAM, Powerchip Semiconductor Corporation (PSC) chairman Fank Huang disagree.

Huang said Hynix plans for an annual supply bit growth of 120%, which is the highest growth rate compared with fellow rivals and that the planned DRAM supply bit growth among Taiwanese players will only average 70-80%. Samsung Electronics, which just revealed its third quarter earnings, said it expects its DRAM supply bit growth to be 50-60% in 2007.

Besides the aggressive expansion from Hynix, Huang noted that the transition period required for adoption of the Windows Vista operation system (OS) is also a major reason for the weak memory pricing. Reviewing historical patterns, he said it should take about two years for a more complete migration and marketers' previous projections about the transition has not taken place in a meaningful way yet.

Despite seeing DRAM prices remaining weak for quite a while, Huang believes that the recent price slump hints that prices have hit bottom. A gradual price rebound is expected from 2008, following an easing of inventory through year-end 2007, projects Huang, stressing that weak pricing usually lasts for 6-8 months.