Mr. Kao said that while output from 12-inch fabs will increase significantly in 2007, DRAM supply will still be tight because about 40% of the current 8-inch fabs will be phased out.

With Microsoft's Windows Vista beginning to boost demand towards the end of this year, and with a compound annual growth rate (CAGR) of 40-50% for DRAM demand, the DRAM market will remain strong through 2008, the Inotera president remarked.

Because of the optimistic outlook for the DRAM market, Kau said Inotera will hold its board of directors' meeting this month to advance the passage of a budget for capacity increase at its 12-inch Fab 2.

By: DocMemory
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