Demand for DRAM from the world’s leading OEM PC makers is expected to grow 15% sequentially in the fourth quarter, indicating that the seasonal demand during the Christmas holiday will come as usual, Michael Sadler, vice president of worldwide sales of Micron Technology, said in Taipei yesterday.

However, the global supply of DRAM is likely to exceed demand in the near future as DRAM makers worldwide have continued to ramp up their output, Sadler noted.

DRAM makers with a high level of DDR2 inventory are expected to face increasing pressure from OEM PC makers to lower their DDR2 prices as a supply shortage of systems chips supporting DDR2 from Intel has resulted in a slow demand for DDR2, Sadler pointed out.

Micron doesn’t have a problem with excess DDR2 because DDR2 currently accounts for about 20-30% of the company’s total DRAM output, while DDR accounts for 30-40% of production, Sadler stated.

Sadler also predicted that demand for NAND flash will surpass that of standard DRAM in 2006, and that Micron will continue to expand its share in the global NAND flash market by strengthening its competitiveness through cost-down measures.

Micron’s capital expenditure for 2006 will be about US$1-1.5 billion, compared to about US$1.5 billion in 2005, Sadler said.

By: DocMemory
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