Samsung Plans to Reduce DDR2 Memory IC Production
Samsung Electronics plans to further slash its DDR2 capacity and instead allocate more capacity for NAND flash production. More than likely this will lead to tighter DDR2 supplies and if DDR2 memory ever starts to sell prices are going to go up and supplies will be low.
Samsung has already reduced its DDR2 capacity by 50 million 256Mbit-equivalent units this quarter. Samsung plans to reduce capacity another 50 million 256Mbit-equivlanent units in the first quarter of 2006, the sources noted. The capacity will be shifted to producing the more lucrative NAND flash memory instead, the sources added. The capacity reshuffle echoes iSuppli?s DRAM forecast for 2006. The market research firm predicted that global DRAM sales will decline by 5.1% to US$23.97 billion in 2006, although a rebound is expected to follow in 2007.
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