Goldman Sachs Inc. believe the DRAM market is setting itself up for severe excess supply problems later this year and on into 2006, the banker said after a visit to several DRAM vendors in Asia.

Goldman Sachs's analysts observed that while every DRAM maker Goldman Sachs visited believes that DRAM bit-supply growth will only be about 40 percent to 45 percent this year for the entire industry, each is planning to add 65 percent to 130 percent of its own bit supply growth by the end of the year.

In that sense, each company is planning on big market share gains to sustain their capacity additions. That in turn, will result in oversupply in the market place.

By: DocMemory
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