A-Data anticipates DRAM industry recovery in March

[Capper]

While top managers at leading memory makers who participated at A-Data Technology's annual banquet all identified 2007 as a hard year for DRAM players, Simon Chen, chairman of A-Data anticipates that a recovery is coming in March.
Chen projects that a recovery in the DRAM industry will be seen in late March as some companies have put a brake on their expansion with a noticeable cut in capital expenditure (capex). The entire 2008 outlook should be better than 2007, he stressed.
In light of the stiff business environment, Chen observed signs of consolidation among industry players, as a considerable amount of companies are forced to quit the market amid weak pricing. Despite posting a poor financial performance in 2007, Chen stressed that A-Data would flexibly adjust production between Taiwan and China to boost competitiveness.
Despite seeing a shaky cyclical trend in the DRAM industry over the past several years, Powerchip Semiconductor Corporation (PSC) chairman Frank Huang reiterated that PSC houses sufficient cash flow to ensure smooth operation. While projecting a gradual recovery in the second half of 2008, Huang commented that industry players should place their focus or efforts to enhance production, rather than just hoping for a price rebound.
As DRAM pricing is poor, Huang noted that some industry players are experiencing a difficult time in obtaining sufficient funds to enhance production and fuel expansion. For PSC itself, the company has spent about NT$30 billion over its 90nm to 70nm transition, he added.

A-Data anticipates DRAM industry recovery in March