South Korea's Hynix Semiconductor expects a rebound in its key market in the second quarter, its chief executive said Tuesday.

"Previous cycles in the sector have lasted about 15 months," said Kim Jong-kap at the Consumer Electronics Show in Las Vegas. "Since the current downturn started in January 2007, we are thinking there may be a likelihood of a rebound in the second quarter."

Hynix and market leader Samsung Electronics have seen prices of DRAM chips tumble in 2007 as makers kept churning them out despite obvious signs of oversupply and weak demand. DRAM

Spot prices of some of the main DRAM chips plunged more than 85 percent in 2007 according to data provided by DRAMeXchange, and in some cases below their cost of production. Still, in recent weeks, investors and analysts have pointed to signs that memory prices are finally reaching a bottom.

Analysts predict a turnaround for the middle of the year, but any recovery is likely to be muted after a yearlong war of attrition that has savaged memory companies' share prices.

Kim said Hynix, which has a share of around 20 percent in the DRAM market as of the third quarter, did not plan to reduce its DRAM shipment growth total in 2008 and would keep it in the industry range of a 50 percent to 60 percent shipment growth for the full year.

By: DocMemory
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