For 2007 as a whole, DRAM ASPs will reduce by 30% on year, versus the less than 15% price erosion that was recorded for the previous year, Hynix said. The Korean chipmaker said the DRAM market situation was especially good in 2006, and sustained price stability.

Hynix reiterated that market demand for DRAM will be slow in the first half of 2007, with quarterly ASPs to drop consecutively by 15% per quarter during the period. However, price trends will grow more stable in the second half of the year, and there may be even chances for ASPs to grow slightly, the company predicted.

Despite the anticipated price drop pressure, Hynix stressed that the price fall in 2007 will be offset by its goal to shrink its DRAM production costs by 30% on year at the same time. Capacity breakdown by DRAM and NAND flash in the fourth quarter of 2006 was 75%:25% and the company plans to adjust the breakdown ratio to 65%:35% during late 2007, stressing that the ratio could be flexibly adjusted to meet market situations.

Up to the fourth quarter of 2006, Hynix had an average quarterly capacity amount of 740,000 12-inch equivalent wafers. The company will steadily ramp this amount to 760,000 wafers in the first quarter of 2007. On a yearly compassion basis, Hynix aims to grow its average quarterly capacity by 20% on year.

By: DocMemory
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