DRAM chip supplier Inotera Memories Inc (ÈA†¿Æ¼¼) yesterday said chip prices would stabilize throughout the rest of this year, driven by strong demand for mobile phones and servers.

¡°In the first quarter, DRAM chip prices dropped deeper than we expected,¡± Inotera chairman Charles Kau (¸ß†¢È«) said, blaming weaker-than-expected demand for PCs.

However, prices are expected to start to rebound next quarter and remain stable in the second half of the year, Kau said.

Market researcher TrendForce Corp (¼¯°î¿Æ¼¼) forecast that the price for mobile DRAM chips would fall at a slower pace of 3 percent sequentially next quarter, thanks to strong demand for Samsung Electronics Co¡¯s new flagship smartphone series, the Galaxy S6, which is outfitted with a larger memory capacity of 3GB instead of the 2GB on its previous phones.

That would help to absorb more DRAM capacity and alleviate the pressure for PC DRAM chip prices to decline, TrendForce said.

PC DRAM chip prices are expected to drop 5 percent next quarter from this quarter, rather than the up to 9 percent decline estimated previously, the researcher said.

Mobile devices and servers are expected to be the growth drivers this year, replacing PCs, while limited growth in output industrywide is also a plus, Kau said.

¡°This year will be the third good year in a row for the DRAM industry, as I asserted two years ago,¡± Kau said.

Next year could be another good year as well, he added.

Inotera ¡ª a DRAM joint venture launched by Micron Technology Inc of the US and Taiwan¡¯s Nanya Technology Corp (Äρ†¿Æ¼¼) ¡ª also expects more positive impact from 20-nanometer chips this year, president Scott Meikle said.

The company plans to ramp up production of 20-nanometer technology products next quarter as scheduled and begin volume shipments in the fourth quarter of this year, targeting growing demand for low-power DRAM chips for smartphones.

At the end of this year, 80 percent of the firm¡¯s total capacity of 80,000 wafers is to be 20-nanometer chips, the company said.

On Wednesday, the company¡¯s board approved capital expenditure of NT$34.4 billion (US$1.1 billion) on 20-nanometer technology migration. In total, Inotera plans to spend NT$50 billion this year.

While the company might be slightly behind its rival Samsung in ramping up to 20-nanometer technology, it believes next year will be a good year to supply 20-nanometer chips, as more smartphones are expected to be equipped with such chips, Meikle said.

This year, only high-end smartphones use 20-nanometer chips, he said.

By: DocMemory
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