Chipmakers look to slow DRAM capacity growth

DRAM manufacturers hope that by reducing capacity growth, prices will stabilize and revenue will grow

By Jim Carbone -- Purchasing, 2/27/2008 11:25:00 AM

Chip companies are selling some fabs and production equipment in an effort to slow capacity growth and to stabilize prices, according to researcher DRAMeXchange in Taiwan.

DRAM maker Elpida has sold its only 8-inch wafer equipment to Cension Semiconductor Manufacturing in Chengdu, China. Qimonda will also stop DRAM production of its 8-inch facility in Germany and return it to Infineon for logic IC production instead, says DRAMeXchange. Qimonda has also terminated its 8-inch contract production agreement with foundries SMIC and Winbond at the end of 2007.

Samsung plans to gradually phase out production from its 8-inch plants. Due to the wide product portfolio, the 8-inch plants should be able to continue operating till 2009, according to DRAMeXchange. Samsung is looking to reduce the output of standard DRAM and NAND flash chips, and focus on more advanced chips.

Last September, an 8-inch plant jointly operated by Hynix and ST has been sold to China Resources Co. The two companies are currently looking for potential buyers for their M9 NAND flash manufacturing facility, according to the researcher. Two other plants will see a decrease in the output of standard DRAM and NAND flash chips, allocating more production to niche DRAM and non DRAM products.

Also see;  Samsung still number one in DRAMs