Supply of DRAM chips will remain mostly tight in 2010, according to Simon Chen, chairman of memory module maker A-Data Technology. With major producers restraining their capacity expansion over the past two years, supply will not be able to catch up with demand for most of the time in 2010.
Given the upbeat outlook, Chen said he does not expect to see seasonal patterns play a significant role in the DRAM industry in the first and second quarters. But he said DRAM prices will not rise sharply.
A-Data will continue to focus on emerging markets, according to Chen. The Taiwan-based company plans to add 3-4 overseas offices to reach a total of 16-17 in 2010, said Chen, adding that China and India are sites for the new offices.
Research firms and companies have expressed optimism on DRAM market conditions in 2010. the market will face a shortage, echoing remarks made by Elpida Memory CEO Yukio Sakamoto, who was quoted in previous reports as saying that he believes supply will run short of global DRAM demand in 2010.
In other news, A-Data has reported revenues of NT$4.29 billion (US$135 million) for December 2009. Revenues for 2009 grew 20.1% to NT$34.84 billion.